Sujoy Manna & Prashant Kothari

Mumbai, April 16: BROKERS affected in the Amara Raja scam have alleged that block trading had taken place in the stock as per transaction data available with them.

Data available with The Financial Express shows that while a large number of shares were traded in this counter on the NSE there was not much movement in the price indicating that for every sale at that price, there was a buy order. The volume transacted was around 1,00,000 shares, which is a very big quantity for an illiquid counter like this. These deals, according to the brokers, could only be block deals.

The brokers have called for nullification of such trades and highlighted that the Calcutta Stock Exchange (CSE) in the recent past is reported to have nullified sale of shares by banks and institutions, claiming that few of the transactions are accommodating transactions. These banks were supposed to face problems of liquidating shares held by them as collateral for advances to brokers. Banks were alleged to have sold these shares through a clutch of brokers. The affected brokers are claiming that a similar thing has happened in case of Amara Raja share, where instead of banks some financiers have sold the shares through a few brokers.