Firm urges EOW to probe NSE over delay in action against Edelweiss

MUMBAI: Anugrah Stock and Broking Pvt Ltd (ASBPL), booked for allegedly cheating at least 400 investors of ₹450 crore, has approached the Economic Offences Wing (EOW) of the Mumbai police to probe the National Stock Exchange (NSE) over the delay in taking action against Edelweiss Custodial Services Ltd (ECSL).

It was alleged that Anugrah Stock, which had around 30,000 clients across the country, defaulted in repayment of money invested through the firm. The firm claimed that it had suffered a loss of around ₹600 crore during the market crash in 2020.

The firm had pledged clients’ shares worth over ₹100 crore to get a margin for trading and clearing house. Edelweiss then squared off their pledged shares and sold the same at lower prices, Anugrah alleged.

Anugrah in its letter to the EOW claimed that, “ECSL liquidated client securities in an unlawful and illegal manner by selling the securities of one client to settle dues of another. ECSL even sold the securities of ASBPL clients, who did not have any outstanding at that instance.”

It further stated that “the EOW needs to ascertain where the money from the excessive sale of clients’ securities has been utilised.” The firm appealed the EOW for investigation into the collusion between officials at the NSE and employees/management of ECSL.

“The EOW needs to investigate the deep-rooted connections held by ECSL with various regulatory bodies such as NSE, NCL and SEBI,” Anugrah said. Earlier, the EOW had arrested Paresh Kariya, the director of the brokerage firm on the basis of a complaint filed by Ashutosh Shah, an advertisement firm director, for alleged criminal breach of trust and criminal conspiracy in September last year. The case was originally registered with the Juhu police and later transferred to the EOW considering the magnitude of the crime.

ASBPL CLAIMED THAT IT SUFFERED A LOSS OF ₹600 CRORE DURING MARKET CRASH