Sebi lets off Edelweiss Securities in alleged fraud trade case

Markets regulator Sebi has disposed of a complaint regarding alleged unauthorised trade executed by Edelweiss Securities on behalf of its client in Parsvnath Developers' shares in July 2012.
It was alleged that Edelweiss Securities, registered as a stock broker with Sebi, traded in the securities of Parsvnath Developers for its client Gajria Jayna Precision Industries without obtaining permission from the authorised person and therefore executed unauthorised trade.
In an order today, the Securities and Exchange Board of India (Sebi) said "the noticee (Edelweiss Securities) has executed trade on behalf of and under intimation of its client Gajria".
"The trading member has submitted documents that show electronic contract note was delivered to the client well within the stipulated time and same was acknowledged by the client through email from the registered email account and there has been no objection for unauthorised trade raised by the client at stock exchange or Sebi," the regulator noted.

Disposing of the matter, Sebi said "there does not appear to be a case that noticee had executed an unauthorised trade on behalf of Gajria... In scrip of Parsvnath Developers at NSE".
In a separate case involving shares of Parsvnath Developers, the regulator has disposed of a case against Kaynet Capital that was alleged to have executed trades on behalf of its client without approval.
"I find that Kaynet Capital Ltd has not executed unauthorised trade while dealing and trading for its client Kuvam Plast Pvt Ltd," Sebi's Adjudicating Officer Nagendraa Parakh said while closing the matter.