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Stop manipulation by debarred brokers: FM

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Press Trust of India Mumbai
Finance minister P Chidambaram today asked market regulator Sebi and the two premier bourses, NSE and BSE, to chalk out a detailed roadmap to prevent manipulation in regional stock exchanges and misuse of sub-brokers by debarred stock brokers.

"There are disturbing reports that debarred stock brokers are misusing regional stock exchanges and sub-brokers behind the scene. It is necessary for capital market regulators to take action against possible misuse of these parties," he said.

Chidambaram warned that government would take stringent action against the debarred stock brokers who are playing behind the scene. "As bad money drives away good money, bad brokers will drive away good brokers from the capital market. Therefore, it is necessary to chalk out the roadmap for sub-brokers against manipulation by these unsavoury stock brokers," he said.

He also asked all regional stock exchanges to corporatise immediately.
"Regional stock exchanges and stock brokers should adhere to the deadline laid down by the market regulator for corporatisation. Corporatisation will offer better quality of service and continuity in capital market," he added.

 
 

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First Published: Apr 08 2005 | 3:06 PM IST

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