Sebi ban on few of our clients, not on us: Indiabulls

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Sebi ban on few of our clients, not on us: Indiabulls

Gagan Banga, Director, Indiabulls asserts that Sebi has not banned Indiabulls from trading on particular stocks but it has said that Indiabulls should not trade on behalf of specific clients who have positions in those stocks. He adds that Indiabulls has not made any proprietary investments in the companies mentioned by Sebi.

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Gagan Banga, Director, Indiabulls says that Sebi has not barred Indiabulls from trading in specific stocks. The regulator has informed Indiabulls not to trade on behalf of clients who have been barred from trading in those stocks, he says.

He adds that, Indiabulls is a fairly large firm with branches all over India and therefore it is not possible for them to track sudden increase in volumes in a particular stock.

Banga further says that, Indiabulls has not made any proprietary investments in the companies mentioned by Sebi including Prime Properties .

Excerpts from CNBC-TV18's exclusive interview with Gagan Banga:

On the Sebi ban:

Indiabulls is not barred from trading in the securities mentioned by Sebi. The regulator has said that we should not trade for specific individuals who have been barred from trading in those securities.

Indiabulls is a fairly large brokerage house and our volumes touch Rs 2000 crores on a daily basis. We are also well spread out across the country with 135 branches, so this size might have resulted in high volumes in the mentioned stocks.

In the Sebi order, 'self-trade' means that there has been some kind of trade getting matched with the buy and sell order. This has happened because of our network being spread across the country with various terminals.

There could be a client buying shares in one part of India and another client selling shares in another part, and probably both the trades got matched. This happens with brokerages that are large in size, this is one of the downsides of being large. A trade match of such a huge size could take place in other securities as well.