ADR on Unauthorized Liquidation of Futures Positions at the Stock Exchange in India: An Empirical Study

Abstract

The paper investigates margin rules, and regulations of Futures segment of Stock Exchanges in India and practices followed by stock brokers of the Stock Exchanges. Trading practices, misuses and abuses of securities market by trading members have been identified and analyzed. It finds how trading members violate of trading rules, misinterpret regulatory compliances and indulge unauthorized trading. The findings and conclusions provide inputs for the development of appropriate regulatory framework for the futures segment of securities market. However, the results may be generalized only in the emerging markets environment. Hence, researchers are suggested to study margin guidelines of futures market, appreciate the dynamics of futures market and apply the same in their future research in India and abroad.

Arbitration on Unauthorized Trading by the Trading Member of Indian Stock Exchange: An Empirical Study

“…In view of the foregoing submissions, hearings, documents, and pleadings of the both parties, and on the basis of findings and conclusions and on the principles of equity, fairness and natural justice, the following award was passed by the ar- resolving the issues and disputes between clients and trading members effectively, efficiently, fairly and correctly in the interest of justice. Managements of trading members have to train their officers of market operations, business development and compliance departments to comply with the rules and regulations of the stock exchanges and adhering to the best practices so that they can avoid these kinds of issues, misuses, and prevent the clients from incurring heavy losses [4]. Investors have to develop practice of following and adhering to know your customer (KYC) rules and regulations properly so that they can avoid this kind of unauthorized authorization and prevent from disputes with trading members.…”