NSE asks Edelweiss to return client securities; Brokerage to move court

Securities were wrongfully placed as collateral by now-banned sub-broker Vrise with Edelweiss

Leading financial services firm Edelweiss will move the Securities Appellate Tribunal (SAT) against an order of the subsidiary of the National Stock Exchange (NSE) on a matter concerning securities pledged by a sub-broker.

On Thursday, NSE Clearing (NSCCL), a clearing corporation wholly owned by the NSE, ordered Edelweiss Custodial Services (ECSL) to return securities belonging to the clients of VRise, which is a sub-broker of the bourse. 

The securities were pledged as collateral with ECSL, which moved to liquidate them after VRise failed to meet its payment obligations. 
 

Subsequently some clients of VRise complained to the brokerage, NSE, as well