THE SECURITY and Exchange Board of India (SEBI) has withdrawn the facility of additional trading time given to the Uttar Pradesh Stock Exchange (UPSE). The withdrawal of facility has hampered trading at the UPSE.
According to sources, SEBI had sanctioned a grace period of 45 minutes to the brokers at the regional exchanges after the closure of day’s business at 5 pm. Later following the complaints of ‘Badla’ trading, the facility was withdrawn.
However, it could not withdraw the facility at the UPSE following a court order.
Former president of the UPSE brokers and Investors Association, Sushil Kanodia filed a petition against the SEBI order and pleaded that if the facility was withdrawn, the existence of exchange would be endangered. Consequently, the court allowed the grace period to continue.
Recently, SEBI has received complaints of ‘Badla’ trading at the exchange and banned any trading after the trading period on each day. The SEBI order has raised serious apprehensions among the brokers and they feel that SEBI is planning to close down the exchange like other regional exchanges.
The brokers also feel that the indifferent attitude of SEBI with regard to initiate an early demutulization process was indicative of SEBI’s ‘bad’ intention, as it has suggested that the regional stock exchanges have lost their importance amidst the changed global trading scenario. Due to SEBI’s indifferent attitude, many regional stock exchanges were closed, they alleged.
However, the administrator at the exchange KD Gupta dispelled any such apprehensions and said in fact SEBI had stressed upon fair-trading at the regional stock exchanges in order to protect the interests of small investors. There was no plan to close down the exchange, he added. He said that the business at the exchange has been picking up gradually after the withdrawal of the extra facility for trading