Financial Daily from THE HINDU group of publications
Thursday, Dec 01, 2005
Financial Daily from THE HINDU group of publications Thursday, Dec 01, 2005 |
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Markets
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Regulatory Bodies & Rulings Industry & Economy - Economic Offences SEBI bars 12 CSE brokers for price rigging Our Bureau
Mumbai , Nov. 30 THE Securities and Exchange Board of India today barred 12 stockbrokers of the Calcutta Stock Exchange from trading till further orders for "artificially inflating the share prices" of Nageshwar Investment Ltd, Adinath Bio-labs Ltd, Globe Stocks & Securities, Goenka Business & Finance Ltd and Coronet Industries Ltd. The trading in these five companies was also banned till further orders, as per the order passed by Mr G. Anantharaman, whole-time director, SEBI. "It is evident from the findings of the preliminary investigation, that the five companies, all of which are listed in CSE, that the brokers have followed a common modus operandi of artificially inflating the price and creating false volumes through continuous self deals executed on the same terminal and cross deals amongst themselves, thereby not only enriching themselves but also aiding and abetting the process of legitimising the gains," the order said. "Besides, the companies themselves have recorded poor or lacklustre 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 besides raising the spectre that innocent investors may get drawn by the artificial trading volumes generated by these brokers and may in the process be beguiled into investing in the shares of these fundamentally weak companies at unjustifiable market prices, only to be left adrift," it said.
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