NSE has directed its members, including stockbrokers, to stop selling digital gold on its platform from September 10. NSE has given this instruction after SEBI raised concerns.
The National Stock Exchange (NSE) has directed its members, including stockbrokers, to stop selling digital gold on its platform from September 10. The NSE has given this direction after market regulator Securities and Exchange Board of India (SEBI) raised concerns. SEBI had said that some members are providing a platform to their customers to buy and sell digital gold, which is against the rules.
SEBI, in a letter issued on August 3, told NSE that such activities are against the Securities Contracts (Regulation) Rules (SCRR), 1957. Members should refrain from doing any such activity. SCRR rule prohibits indulging in any such activity. Such activities are also prohibited for any NSE employee.
Instructed to follow the rules
after expressing concerns went by NSE SEBI has directed the members to adhere to this kind of activity and regulatory requirements at all times. In a circular issued on August 10, NSE said, “Members presently involved in these activities shall, within one month from the date of this circular, cease all activities in this regard.” Necessary information regarding discontinuation of these activities should be given to the concerned customers.
TradeSmart Chairman Vijay Singhania said that Digital Gold Units are not issued by any regulated entity. There is no way to check whether there is gold in physical form as per Digital Gold Certificate. Digital gold does not come under the definition of securities as per the Securities Contracts (Regulation) Act 1956.
Relief to Rana Kapoor from SEBI
Market regulator SEBI on Wednesday ordered to freeze all bank accounts, shares and mutual fund holdings of Rana Kapoor, former MD and CEO of Yes Bank. Rana Kapoor is currently in judicial custody. He was arrested in March 2020 in the Yes Bank fraud case.
In March, the regulator had seized all bank accounts, shares and mutual fund holdings of Rana Kapoor to recover an amount of over Rs 1 crore. Rana Kapoor was fined by SEBI but he could not pay the fine. After this SEBI had confiscated all his accounts, shares and mutual funds. However, now he has given up his right on them.
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