NSE Barred Members From Selling Digital Gold

NSE barred members from selling digital gold after SEBI concerns.

The National Stock Exchange (NSE) has banned the sale of digital gold on its platform from September 10 to its members, including stockbrokers.

The NSE has taken this step after the market regulator Securities and Exchange Board of India (SEBI) raised concerns.

SEBI had said that going against the rules, some members are providing platforms to their customers to buy and sell digital gold.

NSE barred members from selling digital gold: SEBI had on August 3 issued a letter to NSE saying that such activities are against the Securities Contracts (Regulation) Rules (SCRR), 1957.

Members should stop any such activity. Following SEBI’s concern, NSE has directed its members to stop such activities and follow the rules at all times.

SCRR rule prohibits indulging in any such activity. SEBI had said that no employee of NSE can do such activities.

Check whether your PAN is linked with Aadhaar or not, like this sitting at home.

In a circular issued on August 10, NSE said, “For the time being, the members involved in these activities, within one month from the date of this circular, should stop all activities in this regard.”

Necessary information regarding the discontinuation of these activities should be given to the concerned customers.

Digital gold does not come under the definition of securities as per the Securities Contracts (Regulation) Act 1956.

On the other hand, Vijay Singhania, Chairman of, TradeSmart said that digital gold is not issued by any regulated entity.

There is no way to check whether there is gold in physical form as per Digital Gold Certificate

SEBI defreezes Rana Kapoor’s bank and Demat account, Kapoor is in judicial custody.

Markets regulator SEBI on Wednesday issued an order to defreeze (exempt from restrictions) the bank account of Yes Bank’s former MD and CEO Rana Kapoor as well as share and mutual fund holdings.

Kapoor is currently in judicial custody. He was arrested in March 2020 in the Yes Bank scam case.

In March this year, Sebi had attached Rana Kapoor’s bank accounts, shares, and mutual fund holdings to recover dues of Rs 1 crore.

The decision was taken after Rana failed to pay the fine imposed on him. In September 2020, SEBI had imposed a penalty of Rs 1 crore on Kapoor for not disclosing the transaction with Morgan Credit.

Morgan Credit was an unlisted promoter entity of Yes Bank.