HC refuses to reject NSE's plea seeking INR 3.4 bln from Guiness Securities
This story was originally published at 22:37 IST on 24 August 2026
Register to read our real-time news.Informist, Monday, Aug. 24, 2026
NEW DELHI – The Bombay High Court has refused to reject a petition by the National Stock Exchange of India Ltd. seeking the recovery of INR 3.4 billion from Guiness Securities Ltd. and interest arising out of claims submitted by the latter's investors over misappropriation of funds. The court noted that the suit was filed by NSE to protect the interests of investors who are clients of Guiness Securities.
"...I do not find that any case is made out for rejection of the plaint under Order 7 Rule 11 of the Code (of Civil Procedure). The interim application is accordingly rejected," the court said. NSE's suit undoubtedly contemplates urgent interim relief and therefore non-exhaustion of remedy of pre-litigation mediation is not fatal, it said.
The case has its genesis from various irregularities found in the books of Guiness Securities, which executed various trades on behalf of investors. The NSE's disciplinary action committee passed orders directing Guiness Securities to recoup the shortfall of funds and securities. Thereafter, trading membership of Guiness Securities was suspended under all segments and the company and its directors were restrained from accessing the securities market and selling or otherwise dealing in securities.
The NSE had received a total of 5,393 claims from investors of Guiness Securities aggregating to INR 3.4 billion. Accordingly, the exchange filed a recovery suit in the high court. Thereafter, Guiness Securities filed an application seeking rejection of NSE's suit for failure to comply with mandatory pre-litigation mediation as provided under Section 12A of the Commercial Courts Act, 2015. End
Reported by Surya Tripathi
Edited by Rajeev Pai
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.
Informist Media Tel +91 (11) 4220-1000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2026. All rights reserved.
To read more please subscribe
Share this Story:
