JARDINE Fleming (JF) has been censured by the governing board of the Bombay Stock Exchange (BSE) for acquainting overseas investors with the unique problems of dealing with Indian brokers. In a communication to potential investors from outside India, the Hong Kong-based merchant banker and leading foreign institutional investor had listed a host of risks associated with dealing on the Indian exchanges. The letter complained about dealing practices and quoted huge spreads between buy and sell prices. ''Dealing with an Indian broker raises the level of counter-party risk of delivery of good shares'' and ''such dealings usually mean uncertain execution of limit order because of the volatility of the market'' were two other Jardine remarks that the BSE board found objectionable. ''This is tantamount to tarring the entire broking community with the same brush,'' said M.G. Damani, president of the Brokers' Forum and a director of BSE. He said: ''Jardine should have refrained from making such categorical remarks about the brokers. ''In fact, if any foreign institutional investor notices any unfair practices while dealing with brokers, they should bring it to the notice of the BSE's governing board rather than jumping to wrong conclusions and making such damaging statements.'' Mr Damani's remarks were countered by Mark Bullough, Jardine's director for India. ''We mentioned in our communication such risks as we thought foreign investors should be aware of before putting their money on Indian bourses. I am sorry if this has hurt the sentiments of the broking community, but we cannot afford to gloss over the truth.'' The BSE board plans to send a circular advising brokers not to sign a memorandum of understanding with Khanna Securities, which is mandatory for securing business from Jardine. A condition is that the Indian broker is expected to pass back 50 per cent of his brokerage to the firm. According to a broker-director, the Jardine executive who signed the letter to foreign investors has himself applied for membership on the BSE in an individual capacity. The current rate for memberships is 5.5 million rupees (about HK$1.38 million), a figure that was quoted by the BSE when it solicited membership applications late last year. Jardine is effectively the eastern or Asian arm of the London-based Robert Fleming group. Of the three major areas in which it has been active, the most important is fund management. It has some US$55 billion under discretionary management. The company invests for international clients on a world-wide basis, primarily in equity, while not being such a strong player in the debt market. Jardine has independent management in Hong Kong. The company is the largest investor in Asia today, with about $15 billion in equity alone. Its first office in Asia was opened in Hong Kong in 1970.