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Rediff.com  » Business » Sebi bars 11 Kolkata brokers

Sebi bars 11 Kolkata brokers

September 30, 2005 09:23 IST

The Securities and Exchange Board of India has barred 11 brokers of the Calcutta Stock Exchange from the capital markets and has suspended trading in six companies.

The brokers are Sanju Kabra, Shivam Stock Broking, DB & Co, Rajendra Prasad Shah, Badri Prasad & Sons, M Bhiwaniwala & Co, Ram Mohan Sarda, A V Shares & Stock Brokers, Shyam Lal Sultania, Ahilya Commercial and S Jhunjhunwala & Co.

The companies in which trading will be suspended are Prime Capital Market, Subh Laxmi Projects, Global Capital Market, Bankam Investments, ST Services and Amluckie Investment.

A Sebi statement issued late Thursday night said that in the six companies, all of which are listed on CSE and one of which is also listed on BSE and another also listed in Jaipur and Ahmedabad Stock Exchanges, the brokers have followed a common modus operandi of artificially jacking up the price and creating false volumes through continuous self deals executed on the same terminal and cross deals among themselves.

"In the process, they have not only enriched themselves but have also aided and abetted the process of legitimising the gains.

"Besides, the companies themselves have recorded poor or negative financial performance and have not bothered to file up to date financial statements with CSE.

"Such acts by the brokers pose a serious risk to the stability and settlement system of the stock exchange," Sebi said. Their dealings also establish a prima facie case of violation of the Sebi norms.
BS Markets Bureau in Mumbai
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