The number of cases probed by markets regulator Sebi saw a sharp jump of 84 per cent to 245 in 2016-17, mainly because of references received from the income tax department.
The number of cases probed by markets regulator Sebi saw a sharp jump of 84 per cent to 245 in 2016-17, mainly because of references received from the income tax department. Most of the cases were related to market manipulation, price rigging, insider trading and takeover violations. During 2016-17, as many as 245 new cases were taken up for investigation compared to 133 fresh ones in the preceding fiscal, according to Sebi’s annual report. Besides, the investigation has been completed in 155 matters last fiscal compared to 123 in 2015-16. “There was a comparative increase in the number of cases taken up during 2016-17, mainly due to the references received from the Department of Income Tax in the matter of long-term capital gain and short term capital loss in various scrips,” the regulator noted. In the past fiscal, 76 per cent (185 out of 245) of the cases taken up for investigation pertained to market manipulation and price rigging. Also, insider trading and takeover violation cases accounted for 14 per cent and 1 per cent, respectively.
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“Since several investigation cases involve multiple allegations of violations, their water-tight classification under a specific category becomes difficult. Therefore, cases were classified on the basis of main charge and violation,” Sebi said. Ater an investigation is completed, penal action is initiated as approved by the competent authority wherever violations of laws and obligations relating to the securities market are observed, the Securities and Exchange Board of India (Sebi) noted.