Soc Gen Suspended From Trading In India
Indian authorities had enough. Now they are closing down another international foreign brokerage, Société Générale, from trading and operation in India. The reason being problems following the international laws that compel companies to provide complete information about overseas clients.
Soc Gen suspended from Indian financial markets
It was a clear decision from The Securities & Exchange Board of India (SEBI), regulator of the derivate och stock market in the country. If foreign brokerages should operate in India they better follow the rules, was the message from Indian authorities.
It was a large derivative trade in Reliance Communication that was giving Société Générale problems. The derivative and forex broker now have to proof why they did not follow the market regulation as SEBI set up.
Soc Gen now have 30 days to respond. Last month, another brokerage had similar issues with authorities.
The British bank Barclays was also violating the rules and are now to come in with the identity of the buyer.
It seems like it was the same buyer of the derivaties both times; an English broker called Hythe Securities.
Société Générale, which this week announced a profit varning, told they are co-operation with SEBI in order to give all the required information about the illegal trading within 30 days.
