A section of investors in Kolkata on Wednesday accused the National Stock Exchange of enforcing certain rules and regulations on investors that were "not approved by the Securities and Exchange Board of India."
In a public notice, the investors said that to provide fair dealing and protection to the investors, NSE had framed rules and by-laws as approved by the market regulator Sebi.
The exchange had, however, simultaneously enforced upon them another set of regulations and by-laws of its agent and wholly-owned subsidiary National Securities Clearing Corporation Limited that were till now not approved by Sebi, they alleged.
"By-laws of such agent were neither approved by Sebi nor in tune with that of NSE. It is, infact, contrary to the regulation of the provisions of Securities and Contract Regulation Authority, 1956 but are being enforced by NSE by way of an undertaking from every trading member in favour of NSCCL," the notice said.
While NSE officials could not be contacted for their comment, stockbrokers said despite not being approved by Sebi, the NSE was acting in accordance with its agent.
"What is being done by NSE right now is not correct since Amendment Bill 2003, which gives NSE or NSCCL these powers, is yet to be enacted as it is pending in the Parliament," they said.