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First Global set to retrench 40% staff

BS Markets Bureau

First Global Stockbroking Pvt Ltd has set in motion a retrenchment policy which will result in laying off 40 per cent of its workforce and closing 60 per cent of its branches. The stock broking firm has 250 employees and 17 branches spread all over the country.

Shankar Sharma, chief of the firm, refused to divulge the cost of the compensation package to be paid out to the employees but admitted "it is substantial".

The compensation package is being worked out according to the company's policies and in accordance with the labour laws.

In a statement issued to the press, First Global said, "Under the circumstances, in spite of its commitment to all its businesses, First Global is left with no alternative but to effect large scale closure of its branches as well as deep and painful lay-offs for its workforce."

First Global and its associated entities were first barred from trading on April 19 by a Securities and Exchange Board of India (Sebi) order under Section 11(B) of its Act following its interim investigation report on the stock market crisis in March, wherein it had detailed his role in bringing down the market.

This order was further upheld by another 'reasoned order' issued by Sebi on May 25.

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