Brics and straws

Brics and straws

Brics Bank has its own limitations, and let us hope it will...
Much ado about execution

Much ado about execution

Effective delivery must be brought to the centre of policy-making...

Sebi slaps Rs 10L on broker over trades in Adani Exports

Dec 18 2012, 19:36 IST
Comments 0
Market regulator Sebi has imposed a penalty of Rs 10 lakh on Ess Ess Intermediaries for fraudulent trading in shares of Adani Exports Ltd and for violating norms for stock brokers. (Reuters) Market regulator Sebi has imposed a penalty of Rs 10 lakh on Ess Ess Intermediaries for fraudulent trading in shares of Adani Exports Ltd and for violating norms for stock brokers. (Reuters)
SummaryMarket regulator Sebi has imposed a penalty of Rs 10 lakh on Ess Ess Intermediaries for fraudulent trading in shares of Adani Exports Ltd and for violating norms for stock brokers.

Market regulator Sebi has imposed a penalty of Rs 10 lakh on Ess Ess Intermediaries for fraudulent trading in shares of Adani Exports Ltd and for violating norms for stock brokers.

The regulator slapped a penalty of Rs 9 lakh on Ess Ess Intermediaries for fraudulent trade practices and another Rs 1 lakh for violating code of conduct for stock brokers. The matter relates to Sebi probe in the shares of Adani Exports (now known as Adani Enterprises) between July 9, 2004 and January 14, 2005 and August 8, 2005 to September 09, 2005.

During these periods, shares had witnessed huge spurt in volumes as well as wide fluctuations in price.

Sebi had found that certain entities through collusion with the brokers and other clients, transacted in the shares of the company in a manner that led to creation of artificial volumes in the scrip.

The transactions were designed to create a false market and distorted market equilibrium leading to spurt in the price of the scrip which did not have any correlation with the performance of the company, Sebi said.

The regulator found that Ess Ess Intermediaries, a sub- broker, had traded substantially in the shares of Adani Exports for a client.

"It is observed that the noticee (Ess Ess) failed to exercise due diligence and has aided and abetted the said client because of which the said client was able to indulge in the manipulation for his personal gains in the scrip of Adani Export Ltd," Sebi said in an order dated December 14.

"Even if the noticee had not received any disproportionate gain or unfair advantage due to the said manipulation, the same has surely harmed the integrity of a

fair and open market and has caused loss to the innocent investors," it added.

Ads by Google

More from Business

Reader´s Comments
| Post a Comment
Please Wait while comments are loading...