SAT reduces ban period on broker

The Securities Appellate Tribunal has reduced by a month the duration for which broker Integrated Master Securities was barred by Sebi from accepting new clients in a case related to violation of stock broking norms in trading of shares of Gangotri Textiles.
The Securities and Exchange Board of India (Sebi) had barred Integrated Master Securities from accepting fresh clients for two months in an order on May 15, 2017.
In its order yesterday, the Securities Appellate Tribunal (SAT) observed that as a broker Integrated Master Securities should have taken due care and diligence while executing the orders of its clients including possibilities of the clients indulging in manipulative practices.

The Tribunal noted that there is no evidence to show that the stock broker itself was party to any of the manipulative practices.
While upholding Sebi order, the SAT limited the period of restraint imposed on the broker in admitting fresh clients to one month from the date of the order.
A probe conducted by Sebi in the share trading of Gangotri Textiles during April-May 2006 had found that certain entities allegedly functioned as a group (Vishvas Group) and by trading through their respective stock brokers or otherwise, had allegedly executed synchronised, circular as well as reversal trades among themselves.

Cosmo Corporate Services and Master Finlease, who were clients of Integrated Master Securities, had allegedly executed illegal synchronised and circular trades in the scrip of Gangotri Textiles.