SAT partially upholds Sebi order on Ford Brother

The Securities Appellate Tribunal (SAT) today upheld Sebi's Rs 20 lakh penalty imposed on Ford Brother Capital Service for not providing information sought by the regulator's Investigation Authority in various summons.
The tribunal, however, set aside the fine of Rs 10 lakh slapped on the broker alleging fraudulent dealings in the shares of Nandan Exim.
The broker had approached SAT challenging Sebi's rulings.
"Penalty of Rs 10 lakh imposed on ground that the appellant (Ford Brother) allegedly acted in concert with Shailesh M Ved with a view to execute manipulated trades in the scrip of Nandan Exim during the investigation period cannot be sustained," SAT said in an order passed today.

"Hence, penalty of Rs 10 lakh imposed upon appellant ... deserves to be set aside," it added.
Sebi had conducted an investigation into the trading in Nandan Exim scrip for the period June 13, 2005 to September 30, 2005 and September 20, 2006 to November 23, 2006, as there was sharp rise and fall in the price of the scrip and heavy volumes were traded in the scrip during this period.