SEBI allows tainted brokers to trade for retail clients

Mumbai, Apr 28 (UNI) Market watchdog SEBI today allowed banned brokers to trade in the stock markets on behalf of their retail clients, through a clarfication issued in the morning following its earlier order banning 24 operators from trading.

The order is likely to bring relief to retail clients.

Securities and Exchange Board of India (SEBI), in a notification issued here today said ''It is clarified that the directions 'not to buy, sell or deal in the securities market including in IPOs, directly or indirectly, till further directions' in the interim order relating to IPOs issued on April 27, 2006, in so far as they relate to brokers who are SEBI registered intermediaries would apply only in respect of transactions in the proprietary account of brokers, and the transactions on behalf of clients would remain unaffected.'' In the morning, SEBI issued an order that clients should switch over from depository participants (DP) - Karvy and Pratik within 15 days.

''It is clarified that the DP transactions of clients would remain unaffected only for 15 days, by which time switch-over to another DP should take place in respect of directions against Karvy and Pratik DPs,'' SEBI added.

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