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Sebi bars Cyberspace from taking new business

The Securities and Exchange Board of India on Friday barred Lucknow-based Arvind Johari and his broking entities from fresh business transactions with an immediate effect for their prima facie involvement in price rigging into scrip of infotech company, Cyberspace Ltd.

The capital market regulator has barred Johari as an individual member, Century Consultants Ltd, having broking cards of Bombay Stock Exchange and National Stock Exchange, A K Johari of Kanpur Stock Exchange and A M Johari of Delhi Stock Exchange from transacting fresh business following involvment in price manipulations, Sebi sources said.

Sebi has passed an order based on preliminary findings of BSE enquiry into alleged price rigging in Cyberspace Ltd's scrip, the company owned by now absconding A K Johari, sources added.

The infotech firm had raised huge funds by luring people to invest their hard-earned life time savings.

The share price of Cyberspace had flared up to Rs 1,900 before plummenting to Rs 18.45 in March, sources said.

Prima facie, these broking firms were found to be involved in price manipulation and orders were issued under section 11 B of the Sebi Act in the investors interest, they said.

This is second day in succession with Sebi cracking its whip on the broking firms involved in price manipulations, sources said adding yesterday the market regulator had barred Ketan Parekh's four broking and merchant banking firms from transacting fresh business.

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