The Hindu Business Line : SEBI clears broking co after 4 years

SEBI has finally dismissed its enquiry officer's allegation of manipulative trade against a Kolkata-based broking firm after about four years. Mr V.K. Chopra, whole time SEBI member, through an order has cleared Dalmia Securities from alleged manipulative trades in Ranbaxy stock in 1999.

SEBI member in his order said: "I find that synchronised deal is per se not illegal". He further said: "Five synchronised deals with the time gap of number of days in a period of almost six months may not affect the price discovery mechanism of the (Stock) Exchange." The enquiry officer on December 23, 2003 had recommended suspension of registration of the broker for four months on charges of several violations including that of the SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to the Securities Market) Regulations, 1995. SEBI had ordered an investigation in November 2002 into the alleged violations by the member of the NSE, the BSE and the Calcutta Stock Exchange after the Ranbaxy stock price had moved up significantly (from Rs 270 in January 1999 to about Rs 1,200 in October 1999) with increase in volumes. The formal investigation was preceded by a preliminary investigation in August 1999.

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SEBI clears broking co after 4 years