Move National Securities Clearing Corp for trade annulment: SAT tells IL&FS

IL&FS Securities moved the tribunal after Sebi rejected its plea to modify the February order passed against Allied and other entities.

The Securities Appellate Tribunal Wednesday directed IL&FS Securities Services to approach National Securities Clearing Corporation regarding its plea for annulment of certain trades that were executed for stock broker Allied Financial Services.

IL&FS Securities, a clearing member, had contended that settlement of trades were done on the basis of fraudulently transferred collateral by Allied Financial and sought annulment of certain trades.

In its 16-page order, the tribunal also said that Sebi cannot deny IL&FS Securities the opportunity to be heard as it was a party affected by the irregularities committed by Allied Financial.

IL&FS Securities is part of crisis-hit IL&FS group.

In November 2017,