The market regulator during the year conducted investigations into alleged price rigging of shares, insider trading, public issue related irregularities. Till March 2000, total cases taken up for investigation by Sebi went upto 353 since it was formed and cases completed was 243. Out of the total 56 cases taken up for investigations, 47 were for market manipulation and price rigging, two for issue related manipulations, three case were relating to insider trading, one for take-over and three were miscellaneous case.

While for the investigations completed by the market regulator, 37 were for market manipulation and price rigging, eight related to issue manipulation, five from insider trading and seven were miscellaneous case, Sebi annual report for 1999-2000 said.

During the year, investigations and inspections were conducted into number of mutual funds scheme and the market regulator took number of disciplinary action against number of them. The market regulator took inspections of 33 active mutual funds (including Unit Trust of India) and for the first time found irregularites by a fund. The fund to be found with irregularity was Shriram Mutual Fund for helping certain brokers of the BSE who were having payment problems and purchased shares of Videocon International pursuance of buy-back arrangement during June 1998 payment crisis at BSE and NSE.

In this case, following the investigations, enquiry proceedings were initiated against the brokers involved for falsifying the records and adjuctions proceedings were initiated against Shriram Asset Management Company and a fine of Rs 5 lakh was imposed on the AMC.

In addition Sebi ordered the sponsors of Shriram Mutual Fund to pay towards the corpus of the concerned schemes of mutual fund a sum of Rs 25.62 lakh with 15 per cent interest per annum, being the loss to the unitholders.The market regulator also directed the AMCs of Taurus Mutual Fund, IDBI Mutual Fund (now IDBI Principal) and Reliance Capital Mutual Fund to pay interest to the unit holders at the rate of 15 per cent for the delay in despatch of redemption/repurchase proceeds. A total of Rs 17.24 lakh was paid to 14,686 investors from this. During, 1999-2000, on completion of investigations, enquiry proceedings were initiated in respect of 52 intermediaries- stocks brokers, merchant bankers, registrars to an issue and share transfer agents, bankers to an issue and others.