Cse Brokers Face Action Over Negotiated Trades

Nearly a dozen brokers of the Calcutta Stock Exchange (CSE), including some former directors, will face disciplinary action for their involvement in negotiated trades in August, 2000.

The CSE management sub-committee, headed by chairman Dipankar Basu, heard the brokers concerned today before finalising disciplinary action. Financial penalty or suspension on trading, or a combination of both were among the possible punishments. CSE will also hear a handful of brokers within a day or two.

The CSE management has re-opened the inspection report of these 12 brokers following the Joint Parliamentary Committee (JPC) probe into the recent stock market scam. JPC has asked the bourse representatives about the status of the inspection which was launched nearly 15 months ago.

The inspection, like many others, had been given a quite burial by the previous CSE board, which was dominated by the elected brokers.

After returning from the JPC hearing, CSE had issued notices to these brokers to clarify their positions before the management sub-committee today. The brokers, who attended today's meeting with CSE, came away with the feeling that "some kind of punishment" would be imposed.

While financial penalty did not bother them, some brokers expressed concern about being suspended from trading. Such disciplinary action by the authorities would affect their reputation and harm their future business, they said.