 "India Infoline threatens to sue NSEL")
Broking firm India Infoline (IIFL) will shortly move the high court here with a defamation suit against scam-hit National Spot Exchange (NSEL) and its joint managing director, Prakash Chaturvedi, for damages of Rs 500 crore.
IIFL, which has market capitalisation of Rs 6,000 crore, served a legal notice to this effect on March 26, alleging the respondents had sent copies of police custody remand papers of its director, Chintan Rajeshkumar Modi, to 'irrelevant' regulators such as the Insurance Regulatory and Development Authority of India, Securities and Exchange Board of India and Reserve Bank of India.
“We asked NSEL and Chaturvedi for an unconditional apology within 15 working days... Had it shared the copy with the Forward Markets Commission (FMC), we would not have taken such a step,” said E Prasanth Prabhakaran, president (broking), IIFL.
On the Rs 500-crore figure, Prabhakaran said, “This is the amount we assume to have been damaged or will be damaged, being a Fortune 500 corporate broking house where brokerage contributes only 10 per cent.”
IIFL, which has market capitalisation of Rs 6,000 crore, served a legal notice to this effect on March 26, alleging the respondents had sent copies of police custody remand papers of its director, Chintan Rajeshkumar Modi, to 'irrelevant' regulators such as the Insurance Regulatory and Development Authority of India, Securities and Exchange Board of India and Reserve Bank of India.
“We asked NSEL and Chaturvedi for an unconditional apology within 15 working days... Had it shared the copy with the Forward Markets Commission (FMC), we would not have taken such a step,” said E Prasanth Prabhakaran, president (broking), IIFL.
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Responding to the move, Chaturvedi said, “We confirm the receipt of defamation notice, which is being handled by our legal team.”
On the Rs 500-crore figure, Prabhakaran said, “This is the amount we assume to have been damaged or will be damaged, being a Fortune 500 corporate broking house where brokerage contributes only 10 per cent.”