Sebi Suspends 4 Over Rigging In Amara Raja

The Securities and Exchange Board of India (Sebi) has suspended brokerage firms Madhukar C Sheth and Sheth Securities Pvt Ltd for two years, and T J Stock Broking Services Pvt Ltd and LKP Securities Ltd for one month and fifteen days, respectively, for their complicity in manipulating the prices of Amaraja Batteries between August 2000 and March 2001.

The orders against the brokerage firms shall come into effect from June 27. Sebi had investigated the role of brokers on the Bombay Stock Exchange and the National Stock Exchange in the manipulation in Amara Raja Batteries stock during August 2000 and March 2001.

 

It was found that four brokerages had violated the provisions of the Sebi (Stock Brokers and Sub-brokers) Regulations 1992 and Sebi (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 1995.

An enquiry officer was appointed for taking action against the brokers under the appropriate regulations. The enquiry officer submitted his report to the board in respect of the brokers and observed that these brokers were guilty of violating the provisions of the Sebi Regulations.

Meanwhile, LKP Securities has decided to move the Securities Appellate Tribunal against the Sebi order.