Bse Likely To Suspend Crb Group Stocks Today

Withdrawal symptoms: Aftershocks of CRB Capital Market imbroglio

The Bombay Stock Exchange is set to take action against the listed companies of the CRB group. BSE sources said the exchange is contemplating action which could include suspension of three of the group companies from the BSE.

The BSE top brass was closeted in a marathon meeting late yesterday afternoon and a decision is expected to be taken today.

The exchange, it was learnt, has already taken action against CRB Share Broking Ltd (clearing house no 108) and the BOLT terminal of the brokerage has been shut-off for the past one week.

 

The three CRB group companies which are likely to figure in the BSE hit-list are CRB Capital Markets, CRB Corporation, CRB Share Custodial Services. The fourth is a close-ended mutual fund scheme is CRB Arihant Mangal. The BSE top brass is not too keen to suspend the scheme as this would jeopardise the interests of the unit holders.

BSE sources said that the interest of investors would have to be looked into before any drastic action is taken.

Market sources said that the suspension of CRB Share Broking was prompted by a case filed by the Chemox group against CRB. Senior BSE sources said that CRB director C R Bhansali was summoned by the exchange in view of the irregularities.

However, once he did not turn up, action was immediately warranted.

The exchange had asked CRB Share Broking to voluntarily close down business and square-up its market position, the source added.

Every action would be taken by the exchange so that trading on these counters does not become a market hazard, the source added.

A senior BSE governing board member told Business Standard yesterday that the exchange came to know of the problems of the group and suspended the CRB Share Broking sometime last week.