The National Stock Exchange has directed its members, including stockbrokers, to stop selling digital gold on its platform by September 10. In a letter dated August 3, SEBI had informed the National Stock Exchange (NSE) to instruct its members, including stockbrokers. To stop buying and selling of digital gold by 10th September.
SEBI said that some members are providing a platform to their customers to buy and sell digital gold. The regulator, through a letter dated August 3, informed the exchange that the said activity is in violation of the Securities Contracts (Regulation) Rules (SCRR), 1957, and members should refrain from undertaking any such activity.
SCRR Rules prohibit all members from engaging as principal or employee in any business, other than securities or commodity derivatives, except a broker or agent, which does not involve any personal financial liability. Accordingly, NSE directed the members not to indulge in such activity and to comply with the regulatory requirements at all times. “The members presently involved in the activity, shall cease to carry out all activities in this regard within one month from the date of this circular, during which necessary communication regarding closure shall be made to the concerned clients,” NSE said.