Prime entities to appeal against trading ban, Jayakumar to shareholders

N Jayakumar, Managing Director, Prime Securities has said that group entities are appealing against an order barring three companies from accessing the market.

The National Stock Exchange (NSE)  had announced a trading ban on three entities; Primesec, Prime Research and Prime Securities. The exchange had barred the three entities as part of an investigation into the trading activity of Prime Broking Company (India) Ltd. and trading in Gitanjali Gems Ltd. by clients.

“Further we wish to categorically state that no entity belonging to Prime Securities holds any proprietary position in Gitanjali shares. In fact, Prime Research has not transacted in Gitanjali shares ever, Prime Securities last transacted on April 24,2012 and Primesec last transacted on December 3, 2012 in Gitanjali Shares,” said a letter, the first communication to shareholders’ on Prime’s troubles.  

The letter also said that the NSE has approached the Bombay High Court against an Economic Offences Wing (EOW) order to freeze shares of Gitanjali that have been pledged by Prime Broking with the NSE.

“Payouts of certain shares sold by Primesec, Prime Research and Prime Securities through various brokers on February 25, 2013 have been withheld by the exchanges without any stated reason. The companies are seeking appropriate legal remedy,” it said.  

Prime also said that it is still awaiting a show cause notice from the NSE over being declared a defaulter. It also said that it has approached the Securities Appellate Tribunal over the NSE withholding client payments. The appeal is set to be heard in early August.