Sebi restrains broker from liquidating DHFL shares after Rs 2-bn default

Regulatory authorities suspect similar defaults at a few other brokerages that were dealing in shares of Indiabulls Ventures and Infibeam Avenues

The Securities and Exchange Board of India (Sebi) has restrained a Delhi-based brokerage from selling shares of Dewan Housing Finance Corporation (DHFL).

The broker had defaulted on Rs 2 billion in payment to a non-banking financial company (NBFC), which had pledged shares of DHFL with it. Sources say the broker used the shares for proprietary trading and incurred a huge loss, following a sudden 60 per cent drop in shares of the housing finance company last month. The source said the broker and NBFC are at loggerheads over certain trades in DHFL.

“The NBFC has complained to Sebi that the broker transacted