 "India Infoline threatens to sue NSEL")
Broking firm India Infoline (IIFL) will shortly move the high court here with a defamation suit against scam-hit National Spot Exchange (NSEL) and its joint managing director, Prakash Chaturvedi, for damages of Rs 500 crore.
IIFL, which has market capitalisation of Rs 6,000 crore, served a legal notice to this effect on March 26, alleging the respondents had sent copies of police custody remand papers of its director, Chintan Rajeshkumar Modi, to 'irrelevant' regulators such as the Insurance Regulatory and Development Authority of India, Securities and Exchange Board of India and Reserve Bank of India.
“We asked NSEL and Chaturvedi for an unconditional apology within 15 working days... Had it shared the copy with the Forward Markets Commission (FMC), we would not have taken such a step,” said E Prasanth Prabhakaran, president (broking), IIFL.
Responding to the move, Chaturvedi said, “We confirm the receipt of defamation notice, which is being handled by our legal team.”
On the Rs 500-crore figure, Prabhakaran said, “This is the amount we assume to have been damaged or will be damaged, being a Fortune 500 corporate broking house where brokerage contributes only 10 per cent.”
IIFL, which has market capitalisation of Rs 6,000 crore, served a legal notice to this effect on March 26, alleging the respondents had sent copies of police custody remand papers of its director, Chintan Rajeshkumar Modi, to 'irrelevant' regulators such as the Insurance Regulatory and Development Authority of India, Securities and Exchange Board of India and Reserve Bank of India.
“We asked NSEL and Chaturvedi for an unconditional apology within 15 working days... Had it shared the copy with the Forward Markets Commission (FMC), we would not have taken such a step,” said E Prasanth Prabhakaran, president (broking), IIFL.
Responding to the move, Chaturvedi said, “We confirm the receipt of defamation notice, which is being handled by our legal team.”
On the Rs 500-crore figure, Prabhakaran said, “This is the amount we assume to have been damaged or will be damaged, being a Fortune 500 corporate broking house where brokerage contributes only 10 per cent.”
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →*Subscribe to Business Standard digital and get complimentary access to The New York Times
Smart Quarterly
₹900
3 Months
₹300/Month
SAVE 25%
Smart Essential
₹2,700
1 Year
₹225/Month
SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months
Super Saver
₹3,900
2 Years
₹162/Month
Subscribe
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
SAVE 25%