Bse Panel Slaps Fine On 6 Brokers

The Disciplinary Action Committee (DAC) of the Bombay Stock Exchange (BSE) which met on February 21, has decided to impose a fine of Rs 5,000 each on six brokers for irregularities in trading in the B2 group shares.

This apart, two broking firms including SRF Finance, who were hauled up by the Bombay Stock Exchange administration for their alleged role in short-selling at the ITC counter, have been let off with a warning.

The explanation forwarded by the two firms was found to be satisfactory by the committee, it was learnt.

It may be recalled that the nearly 1.05 lakh scrips of ITC were shortsold in the settlement A-33/96-97, which were auctioned on November 18, 1996.

Short-selling of ITC scrips took place at a time when the stock prices touched Rs 320 levels from Rs 240 levels after the company came under fire for Fera violations.

A BSE source said that all six brokers, despite their role in irregularities, had unknowingly transacted in those counters.

These brokers could have been let off without any punishment. Instead, besides being asked to pay up a fine, they have been asked to exercise more caution in the future while entering into deals, the source said.

The other issues which were taken up in the meeting included transactions in Triplex Overseas and Blue Chip, and also irregularities in trading in the scrips of Dhanprayog Investment .

Also introduction of shares in the market during suspension was discussed in the meeting.