Sebi suspends JSE broker

PRESS TRUST OF INDIA

Mumbai, Sept 3: The Sebi has suspended a member of the Jaipur Stock Exchange (JSE) for a period of six months for rigging the share price of Rahul Merchandising. The JSE member, Kailas Chand Badaya's suspension will come into effect from September 10. The member has been found guilty of creating a false market resulting in an artificial rise in the share price of Rahul Merchandising from Rs 27 to Rs 120 in the period November 20, 1995 to January 4, 1996, Sebi stated. During investigations it was found that the said member was instrumental in creating a false market in the scrip on the JSE. Pursuant to the submission of an investigation report and consequent to enquiries conducted by the market regulator, a show cause notice was issued under the Sebi regulations.

After considering the material on record, submissions made from time to time and reasons given in the enquiry report, Sebi has found the member guilty of violating the Sebi (Stock Broker and Sub Broker) Regulation, the statement added.

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