The regulator has suspended few players from trading in the market and warned others for indulging in anti-market activities. Most of the brokers have been under Sebi lens for mis-dealing in penny stocks.
Brokers have faced the wrath of the regulator for reasons ranging from indulging in fund-based activity, dealing with unregistered sub-brokers, non-maintenance of order book, non-segregation of clients funds and own funds, discrepancies in contract notes, delayed delivery or transfer of securities from pool account, failure to maintain "Know Your Client" (KYC) database and Unique Client Code, undertook trade transfers, 'Saudas' being punched in the back office and without actual transactions being carried out on the terminal.
In December alone, Sebi has clawed on about 40 broker and sub-broker members of BSE, NSE, Calcutta Stock Exchange and some regionl exchanges such as Uttar Pradesh Stock Exchange (UPSE) and Madhya Pradesh Stock Exchange (MPSE). They have been either debarred from trading in a particular stock or even for some days and months. Some of them have been given stern warnings and cautioned them for future dealings.
Sebi has suspended Korp Securities Ltd (KSL), NSE member for six months with effect from January 17, 2006. In another order, Sebi has suspended the registration of JGA Shah Shares Brokers Pvt Ltd for ten days in dealing with the stock of Vision Technology India Ltd (VTIL).
Has cracked down against more than a dozen market participants in the last two days for violating regulatory norms
Sebi has also warned two sub-brokers of BSE Ltd. NK Malpani and Maulik Investments to be careful in future in dealings with the securities market and diligently adhere to the provisions of the Sebi Act, 1992. The brokers have been found guilty in dealing in the shares of Rashel Agrotech Ltd.
The regulator has warned Atmaram Kejriwal & Co, member, UPSE for indulging in anti-market activities. Similarly, Sebi warned Kanodia Stock Broking Private Ltd, CSE member, Nirpan Securities Private Ltd, NSE and Sykes Ray Equities (I) Ltd, member, BSE and NSE for not following regulatory norms. The regulator has taken similar action against several market participants for violating market regulations.