NEW DELHI : In another action against stockbrokers engaged in a co-location scam, the
on Wednesday conducted searches across eight locations in Sikkim, Delhi, Mumbai and Kolkata involving trading on National Stock Exchange (NSE) and Multi Commodity Exchange (MCX). The agency also seized Rs 4. 7 crore in bank accounts of the brokers.
“The locations searched include various premises of limited partnership firms in Sikkim, which were controlled by brokers trading in MCX and NSE in Kolkata and Delhi,” the ED has said.
These brokers allegedly operated from Delhi and Mumbai while taking undue advantage of co-location of Sikkim and availing stamp duty exemption. Further, the agency also searched premises of various stockbrokers in Delhi and Mumbai who were found to be faking as Sikkim-based traders. The agency has seized incriminating evidence. The ED’s money laundering probe is based on an FIR registered in Gangtok in May this year by the Sikkim vigilance police.
“It has been alleged in the said FIR that the disproportionate data in MCX trading from Sikkim is highly doubtful and some Limited Liability Partners (LLPs) and traders from other states are doing high frequency MCX trading either using identity of Sikkim residents or using co-location of Sikkim illegally for taking undue advantage of the Income Tax and stamp duty exemption given to the people of Sikkim,” the ED said. Further investigation is in progress.
The ED has been currently probing a co-location scam in the NSE and has already arrested its former CEO Chitra Ramkrishna and her adviser. The agency last week also questioned former Mumbai police commissioner
in the same case as a firm associated with him was responsible for the audit of the NSE during the period of the scam.