NSE finishes probe into Prime's Gitanjali share trades

The National Stock Exchange has completed its investigation of Prime Broking's trades in the shares of Gitanjali Gems earlier this year.

The exchange has communicated its findings to the stock market regulator, according to a person familiar with the matter. Details of the probe could not be ascertained. "An order can be expected soon," said the person.

NSE had announced the probe on June 28. It also said it had halted payout or settlement of the deals being probed. It subsequently came out with a circular dated July 18, barring 26 entities in relation to the same case by deactivating their Unique Client Code, used to identify market participants. The Securities and Exchange Board of India was part to the decision.

Among those whose client code was suspended were Mehul Choksi, promoter of Gitanjali Gems. He'd maintained he had nothing to do with Prime. An exchange spokesperson declined to comment. An email sent to the regulator did not receive a reply.

Gems and jewellery giant Gitanjali had total revenue of Rs 10381 crore for the financial year ended March 2013. It had a net profit of Rs 265 crore, according to exchange data. Since then, its profits have dived. It was down 76 per cent in the June quarter over the same one last year, according to unaudited results. The net profit fell from Rs 149 crore to Rs 35 crore. A company spokesperson had pegged the fall on business problems in the wake of the recent curbs on gold imports and liquidity issues.

UNDER SCANNER

June

• NSE investigates Prime Broking related to transactions in the shares of Gitanjali
• Halts payout of trades being probed

July

• Disables trading for 26 entities
• Includes Prime group entities as well as Mehul Choksi, Gitanjali's promoter.

October

• NSE completes probes
• Sends recommendations to Sebi