Kanpur broker loses trading rights

The administrator of the Kanpur Stock Exchange, M N Sabherwal, has terminated the trading rights of the dissident stock exchange leader Sushil Kanodia's firm, Kanodia Share and Security Ltd, alleging misconduct.

The administration has imposed a penalty of Rs 1 lakh, payable within seven days. Kanodia has been further barred from entering the exchange. The order was issued last week.

Instances of misconduct are issuing press statements and sending letters to various government authorities without authority, misusing the UPSE Brokers Association's the right to use cabin No 686 in violation of Article 25 of the articles of association of the exchange, etc.

A show cause notice was served on Kanodia on May 30 and was given ten days to file a reply. Kanodia asked for time till July 15 because "lawyers were out on a summer vacation".

He asked for time up to July 15. But the administrator rejected his plea. This is the latest instance in the long-running feud between brokers and the administrator.