Press Release

Secondary Market Department

It has been brought to the notice of SEBI by the RBI that Nagpur District Central Co-op Bank Ltd (NDCCB) has entered into certain transactions in government securities with M/s Home Trade Ltd a registered broker, in violation of RBI’s instructions. According to RBI these investment transactions of NDCCB put through Home Trade appears to be fraudulent in nature. 

The conduct of the broker as evident from RBI’s correspondence and other supporting documents appears to SEBI, to be in violation of item (1), (2), (4) and (5) of Schedule II of the Code of Conduct for the brokers under Regulation 7 of SEBI (Brokers & Sub Brokers) Regulations, 1992. Being a fit and proper person is one of the criteria for the brokers to obtain certificate of registration from the Board. In the facts and the circumstance of the case, the Home Trade doesn't appear to be a fit and proper person to continue as a stock broker. 

In order to ensure that no further harm or detriment is caused to the market or that investors are not adversely affected and that the safety and integrity of the market remain unimpaired, SEBI has debarred the Home Trade from dealing in securities till May 10, 2002. A post decisional hearing is being given to Home Trade on May 3, 2002.