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First Global may lose LSE membership

BS Markets Bureau

First Global, which has been barred from trading in the stock markets, is in threat of losing its membership of the London Stock Exchange. The brokerage's application to Nasdaq is also in jeopardy as a direct result of the action taken against it by the Securities and Exchange Board of India.

Shankar Sharma of First Global refused to talk on the grounds of contempt of court, but agreed that the threat perception was real. First Global has been found culpable of manipulating the market in March this year, and Sebi passed an order banning the firm from trading.

Sharma has filed a petition in the Bombay High Court challenging Sebi's order. The first hearing was held on Thursday. According to Sharma's lawyer, the process of natural justice has not been followed, and Sebi's own regulations have been subverted as the interim order has been passed without any hearing while the order itself has no specific charges.

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