Sebi fines Angel Capital for synchronised trading

The Securities and Exchange Board of India (Sebi) has imposed a fine of Rs 3 lakh on Angel Capital and Debt Market for indulging in syncronised trading and reverse trades in March, 2007.

Synchronised trading takes place when the same quantity of shares are brought and sold in the derivatives/cash market by a same broker. Reverse trades are fictitious trades meant to increase volumes on the screen of the trading system as there is no change of beneficial ownership in the traded shares.

In case of Angel Capital and Debt Market, the order stated that since there was no quantifiable figure available to assess disproportionate gain or unfair advantage made by the entity, the penalty imposed was only Rs 3 lakh.

“The broker had taken certain pro-active steps or measures on its own accord and tried to curb further such trades from getting executed. But the fact remains that manipulation was done,” the order said.

Speaking to Business Standard, the Chairman and Managing Director of Angel Capital and Debt Market, Dinesh Thakkar said, “We would be approaching Sebi to further reduce the penalty, as our track record shows that no such activities have been repeated and our due diligence systems are in place.”