INTRO TO INDICTED BROKERS

ALLEGATIONS AGAINST BROKERS

INVESTIGATION AGENCIES PROBES

MPID COURT JURISDICTION

VERDICT

Anand Rathi Commtrade Ltd., founded in 1994 by Mr. AnandRathi, today has a pan India presence across 750 locations.

Geofin offers trading services in Commodities Futures. It is managed by a group of professionals having considerable years of experience and expertise in Commodities, ever since the reintroduction of Commodities Futures in india in 2003.

IFL Holdings Limited (formerly known as India Infoline Limited) is the apex holding company of the entire IIFL Group, which is a leading financial services company in India.

On 3rd March 2015, The EOW Mumbai arrested Amit Rathi, Director of Anand Rathi Commodities Limited (ARCL)

Cherassary Krishnan, Director of Geofin Comtrade.

Chintan Modi, Director of India Infoline Commodities.

EOW investigations reveal that the three brokers, who were arrested on March 3, had allegedly given false information to investors and auditors of NSEL.

Brokers allegedly traded in their clients names without their consent.

These 3 Top Brokers had manipulated the trading volumes of NSEL.

ARCL started trading on the NSEL platform in 2009, and presently has 12,900 clients.

In the past four years, ARCL traded worth Rs19,130.2 crores, which is around 16% of the overall turnout on the NSEL platform.

ARCL had falsely assured investors that they (ARCL) had done the due diligence, and there were enough settlement guarantee funds, thus enticing them to invest in NSEL products.

TO BE CONTD……

ARCL also acted as a clearing and forwarding agents, and gave NSEL auditors deceitful information that there were adequate goods in the warehouses.

The EOW investigators also believe that ARCL masqueraded as its client to do large deals (Also known as UCC manipulation).

We have come to know that UCC manipulation (masquerading) was done rampantly from two conduit accounts without the consent of the account holder and commodities were bought without the consent of the clients, leading to unfair trade practices

A special court on Friday extended the police custody of Amit Rathi, director of Anand Rathi Commodities Ltd (ARCL)

Amit Rathi was sent to the extended custody, Rathi’s bail application will be heard on March 20.

The court noted that Rathi was an authorised signatory to the bank accounts of ARCL.

Amit Rathi actively participated in board meetings, based on documents provided by the Mumbai police’s Economic Offences Wing

As per media reports & Investigating Agencies it is clear that Amit Rathi was fully aware of the notorious act which was played under his nose and it sounds very unpleasant that Amit Rathi couldn’t whiff this.

Granting bail to Amit Rathi will not only adversely affect investors, but it will promote this unethical trade practices in the future.