SAT to take up Prime's appeal on August 8

Prime Broking's appeal against the National Stock Exchange (NSE) in the Securities Appellate Tribunal would now be heard on August 8, according to a person familiar with the matter. The hearing had earlier been scheduled for last week.

The brokerage had appealed against the exchange for holding back client funds. Following a default by the brokerage, the exchange had confiscated funds of clients in the company's portfolio management services division.

N Jayakumar, managing director at Prime Securities, did not respond to a query. An exchange spokesperson confirmed the appeal.

After Prime Broking had failed to meet obligations towards the exchange, NSE had disabled its terminals.

This was followed by an announcement that the NSE had begun investigating the trading activity of Prime Broking and related entities, as well as trades relating to the share of Gitanjali Gems. On Jun 28, the exchange had announced it would halt payouts for the transactions involving Prime. 

 

Subsequently, the NSE and stock market regulator, the Securities and Exchange Board of India barred 26 entities from accessing the market in a notification dated the 18 th of July. The ban is for a period of six months or until investigations are completed, according to the NSE announcement. Mehul C Choksi, Managing Director of Gitanjali Gems was also amongst the 26 entities barred from dealing in the market. 

 

N. Jayakumar, Managing Director at Prime Securities did not respond to a query on the matter. An exchange spokesperson confirmed the appeal but declined further comment. 

Prime's August Appeal

-Prime appealed in SAT against NSE on June 26th

-Next hearing was scheduled for third week of July

 

-It has now been adjourned to 8th August

-Prime had defaulted on exchange payments

-Investigation of trading activity of Prime and related entities; and transactions involving Gitanjali Gems is underway