NSE Freezes ₹78 Crore Payout Amid Police Investigation into Unauthorized Trades
NSE withholds rupees 78 crore payout after police complaint over unauthorised F&O trades
The Economic TimesImage: The Economic Times
The National Stock Exchange (NSE) has withheld payouts totaling ₹78 crore following a police complaint regarding unauthorized equity derivative trades affecting over 3,000 clients. This action, taken under the Market Infrastructure Institutions Standard Operating Procedure, is unusual for derivatives and has significant implications for the involved clients.
- 01NSE has frozen payouts of ₹78 crore due to a police complaint.
- 02Over 3,000 clients across 160 brokers are affected by this decision.
- 03The majority of the withheld funds, ₹72 crore, are from NSE Clearing.
- 04The complaint involves unauthorized trades in Nifty options on May 5.
- 05The exchanges will release funds only after police instructions.
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In an unprecedented move, the National Stock Exchange (NSE) has withheld payouts amounting to ₹78 crore (approximately $9.4 million USD) following a police complaint regarding unauthorized equity derivative trades. This decision impacts over 3,000 clients across 160 brokers. Of the total amount, ₹72 crore is held by NSE Clearing, while ₹6 crore is withheld by the Bombay Stock Exchange's Indian Clearing Corporation. The complaint, which alleges unlawful trading activity, pertains to Nifty options trades executed on May 5, coinciding with the expiration of weekly contracts. The NSE acted on May 6, issuing a circular to halt all fraudulent transactions linked to the complainant's trading account until further notice. The exchange has not disclosed the identities of the involved broker and client. The release of the withheld funds is contingent upon instructions from police authorities, leaving affected clients in a state of uncertainty as they await resolution.
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This payout freeze could lead to financial strain for the affected clients, impacting their trading activities and liquidity.
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