Dispute Resolution on Unauthorized Trading in Indian Securities Market: A Case Study Approach ()
ABSTRACT
The paper examines the regulatory compliances of the
trading rules and regulations of the Stock Exchanges by trading members while
serving its clients in the securities market in India. The paper opted for a case study approach to study the unauthorised trading practices of
trading members on Indian Stock Exchange system and identified the nature and complexity of securities market’s misuses and abuses. The
paper identifies how trading members are violating and avoiding the compliances
of trading regulations of the Stock Exchange. The paper provides empirical
evidences and insights how the trading members were indulging in unauthorised trades and recovering the losses on account
of unauthorised trades from the respective clients. The paper finds that these
practices are not only violation of trading rules of the Stock Exchange but
also unfair and unethical trading practices. The limitation in a case study
approach, the research findings and results may lack generalizability. Hence,
researchers are encouraged to study results in other countries. This paper
provides inputs for the development of appropriate regulatory framework for
prevention of unauthorised trading in Indian securities market, curtails capital market abuses and enables the investor protection. The findings
and results provide critical perspectives on regulatory challenges and
encourage the regulatory authorities to issue relevant guidelines to stock
brokers to prevent executing unauthorised trades for clients. These guidelines
will certainly prevent the menace of
unauthorised trades and curtail capital market abuses and enhance investor
protection.
Share and Cite:
Brahmaiah, B. (2017) Dispute Resolution on Unauthorized Trading in Indian Securities Market: A Case Study Approach.
Theoretical Economics Letters,
7, 1814-1820. doi:
10.4236/tel.2017.76123.