Angel Broking message on suspending crude trade triggers bankrupt rumors; Fact Check

The price of a barrel of oil went almost negative for the first time on Tuesday, April 21, 2020. The global demand took a massive dive for the worst amid the coronavirus outbreak as airlines and other buyers are not using much crude as they normally do. Many brokers endured heavy losses in MCX or the Multi Commodity Exchange (MCX) in crude oil contracts and suspended trading in crude for sometime.

Angel Broking, a retail broking house and a member of Bombay Stock Exchange (BSE), National Stock Exchange of India (NSE), National Commodity & Derivatives Exchange Limited (NCDEX) and Multi Commodity Exchange of India Limited (MCX), which suspended trading in crude oil.   

Coinciding with Angel Broking’s move, a WhatsApp message has started making rounds claiming that Angel Broking is in losses and “likely to surrender commodity business due to heavy loss in crude oil.” In addition, it has warned customers of Angel Broking as below:

“If Anyone having Broking account in ANGEL BROKING may withdraw their money lying for time being..

And also move their shares from pool (if any) to their other Demat accounts

Looks like something is not right there…

Forwarded as Received from a good source.”

Fact Check:  
 

When fact-checked by Digiteye India team, the news about Angel Broking suspending the trade in crude was announced clearly but nowhere does it spark suspicion that Angel Broking is bankrupt or that people should move their Demat accounts.

Suspending trade in crude oil is taken as a precautionary measure by the broking company to help its customers. In fact, trading in other commodities is continuing as usual. Moreover, all these brokers have to mandatorily submit to respective exchanges if any such case of default or bankruptcy arises.

Angel Broking issued the public notice on their Twitter account clearly as below:
 

Concluson: The move to suspend trading in crude is to benefit customers in the commodity market and not that Angel Broking is entirely surrendering its business on the commodity exchange. The claim is ??? Misrepresentation.

 
 
 
 
 

About Vanisha Jagwani

Vanisha Jagwani is an intern with Digiteye India and a student of journalism at the Symbiosis Institute of Media and Communication (SIMC), Pune. Prior to this, she worked as a content writer for Dubai Week.ae and Connector Magazine. She can be reached at vanisharj@gmail.com

Leave a Reply

Your email address will not be published. Required fields are marked *

*

This site uses Akismet to reduce spam. Learn how your comment data is processed.