MUMBAI: Securities and Exchange Board of India is likely to review its decision of penalising brokers for 'self trades'. Sebi has called for a meeting of stock brokers and legal heads of stock exchanges on October 26 to discuss the matter.Orders that match with each other with no resultant change in ownership are called self trades . A letter written by Godse highlighted that 224 brokers on BSE and 319 brokers on NSE, including foreign players, escaped the scrutiny of the market regulator despite having executed many self trades in a single day. Brokers said Sebi's stand that self trades were manipulative was Rs impractical' since the broker has no control over who the counterparty is at the time of matching the trade as the trading engine finds and matches orders based on price time priority. An email sent to Sebi did not get any response.

Source: Economic Times October 24, 2016 03:05 UTC