Sebi bars Angel Broking for two weeks
A probe conducted by Sebi in the scrip of Sun Infoways during February-May 2001 found that there was consistent fall in company’s share price accompanied by low delivery. During that period, Sun Infoways had fallen from Rs 342 on February 5, 2001 to a low of Rs 60.75 on April 30, 2001 before finally closing at Rs 73.75 on May 2, 2001.
According to the order, circular or reversal trades were executed by certain brokers forming part of few groups in the the company’s share. Such trades created artificial volume to the tune of 5.43 lakh shares in 37 days out of 50 trading days and had also generated 26-97 per cent of the daily volumes. These trades had resulted in a significant fluctuation in the company’s share price.
Sebi rejected Angel Broking’s response that it had acted “purely as a stock broker” for a client. Angel Broking had also stated there was “no evidence on record” it had acted as part of a group in collusion with one other, according to the Sebi statement.
Suzlon settles charges with Sebi
Sebi has disposed of proceedings against wind turbine maker Suzlon Energy, its chairman Tulsi Tanti and four other executives after they together paid Rs 12 lakh to settle charges related to alleged delay in amending insider trading norms.
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