NSEL case: Sebi cancels MMTC’s stock broker licence, existing clients can withdraw funds in 15 days
livemint.comPTI report, in September 2009, NSEL introduced the concept of ‘paired contracts’ for trading, which allowed buying and selling of the same commodity through two different contracts at two different prices on the exchange platform, wherein the investors could buy a short duration contract and sell a long duration contract and vice-versa at the same time at a pre-determined price. The trades for the buy contract and the sell contract used to happen on the NSEL on the same day at the same time but at different prices, involving the same counterparties.
The transactions were structured in a manner that buyers of the short duration contract always ended up making profits, the report said. (With inputs from PTI)Get the best recommendations on Stocks, Mutual Funds and more based on your Risk profile!
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