Sebi warns AMS Finance in fraudulent trading case

Giving it "benefit of doubt" in a case related to fraudulent trading, Sebi has warned AMS Finance & Securities to be "cautious" in its future dealings as a securities market participant.
The matter pertained to alleged violation of Sebi's (Prohibition of Fraudulent and Unfair Trade Practices relating to securities market) regulation by AMS while dealing in shares of Soundcraft Industries Ltd (SIL).
It was alleged that a handful of brokers and clients including AMS Finance & Securities created false and misleading appearance of trading in the shares of SIL so as to establish and maintain the price of the scrip at specific level through structured and circular trades.

In its order, Sebi Whole Time Member S Raman said: "I am inclined to give benefit of doubt to the notice (AMS Finance & Securities) in respect of the charges alleged. However. I find that the noticee has participated in the circular trades as well as structured deals in the scrips of SIL on many occasions...Which eventually resulted in creating artificial volume in the scrip of SIL."
Sebi has warned "AMS Finance & Securities to be cautious in its future dealings and exercise due care and diligence in the conduct of its dealings as securities market participants."
Sebi had conducted a probe into the buying, selling and dealing in securities of SIL during July 2001 and January 2002.