Sebi warns Robinson to be cautious while dealing in share mkts

Capital markets regulator Sebi has warned Robinson Worldwide Trade Ltd to be cautious while carrying out its activities in the securities market.
In an order, Sebi has warned" Robinson Worldwide Trade (presently known as Sun and Shine Worldwide) to be careful and cautious in the conduct of its stock broking activity and adhere to and comply with all the statutory provisions while carrying out its activities in the securities market."
It was alleged that Robinson, by making premature news/announcement, lured the gullible investors to invest in its scrip.
In September 2004, Robinson had made a corporate announcement at the BSE that its board of directors were meeting to discuss the proposal to acquire majority stake, either in cash or share swap, in Praixit Industries.

The announcement led to a marginal rise in the company's share price as well as increased the trading volume.
In January 2005, the board of directors at Robinson had approved the investment in Praixit through share swap.

Thereafter, the firm's scrip prices increased from Rs 120.40 in October, 2004 to Rs 230.60 in June, 2005.
Securities and Exchange Board of India (Sebi), in its probe, found that the firm, although made pre-mature announcement of acquisition, it did not file any minutes of its board meeting on the BSE.
It was also found that the firm did not disclose the cancelling of the acquisition which was decided in 2008 (later claimed to have been taken in the year March-April 2006), after inordinate and unexplained delay.

Even in the annual reports of Robinson for the years -- 2004-05 and 2005-06 -- there are no disclosures about acquisition or cancellation of the deal.
However, it is not factually established that such increase in volume was artificial or was created on account of any artificial dealings in the scrip of Robinson, Sebi said.
Further, there is no material on record to show that the promoters, directors or persons in charge of affairs of the company, traded in its scrip during this relevant period, it added.
Earlier, Sebi had passed an order in March, 2012 that imposed a penalty of Rs 3 lakh on the firm and its directors, which they paid.