Sebi disposes case against Brics Securities

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Market regulator Sebi today disposed of a case against Brics Securities for alleged violation of broker norms with regard to trading in Winsome Textile Industries, saying the charges could not be established.

The Securities and Exchange Board of India (Sebi), in its order dated October 30, said the violation of relevant provisions of Stock Brokers norms could not be established against Brics Securities and accordingly the adjudication proceedings are disposed of.

The matter relates to a case in 2008.

In the show cause notice, it was alleged that the Brics Securities has executed self trades in the scrip of Winsome on behalf of its client Ritesh Ashokkumar Shah wherein it has acted as both stock broker and counter party stock broker.

The regulator had said that Brics Securities on behalf of its client had executed three self trades on three days for 86 shares in Winsome shares, wherein it has acted as both stock broker and counter party stock broker.

"It is observed that out of three self trades, one self trade was for one share only. The self trades were executed from different terminals with a time span of two minutes, three minutes and three hours," Sebi said in its order.

"Buy order quantity and buy order price were different from sell order quantity and sell order price in two self trades while in one self trade only buy order quantity was different from the sell order quantity. The self trades were executed for only three days during the entire investigation period (October-December 2008)," it added.

The regulator further said that in the present matter "there is nothing on record available to suggest that the noticee (Brics Securities) was in any manner involved with its client in executing the aforementioned self trades."