Pse Brokers To Seek Mercy From Sebi

The 23 brokers of Pune Stock Exchange (PSE), who are facing suspension orders from the Securities and Exchange Board of India (Sebi), have decided to make a mercy petition to Sebi chairman Dr Mehta. They have requested him to be lenient and drop the harsh suspension orders. The PSE brokers claim that if the top brokers are suspended, trading on the exchange could come to a standstill. This is because the 23 brokers contribute to over 80 per cent of the trading turnover on the bourse. Asked on the likely impact on the exchange if the brokers are suspended, PL Kadlaskar, executive director of PSE said: I cant visualise the impact at this moment.

Interestingly, 99 per cent of trading on the PSE is restricted to transactions in only three scrips - Reliance Industries, Tisco and SBI. The deliveries, too, are negligible as most of the trades are squared off or carried forward by shifting the trades on to BSE or NSE.

Since the Sebi crackdown on PSE brokers in February 1996, the total daily turnover on the exchange has witnessed a sharp fall of over 50 per cent. From an average daily turnover of Rs 120 crore plus prior to the Sebi crackdown on the PSE in February 1996, it has declined to around Rs 60 crore-plus average daily turnover.

The brokers claim they had confessed their illegal dealings on the assurance from Sebi officials that they would be lenient.

However, with the Sebi issuing showcause notices of suspension ranging from 3 months to 2 years, brokers feel the officials have gone against their assurance.