Financial Daily from THE HINDU group of publications
Tuesday, Sep 14, 2004
Financial Daily from THE HINDU group of publications Tuesday, Sep 14, 2004 |
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Markets
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Regulatory Bodies & Rulings Money & Banking - Private Banks SEBI gives clean chit to ICICI Brokerage on GTB synchronised deals Our Bureau
Mumbai , Sept. 13 THE Securities and Exchange Board of India has given a clean chit to ICICI Brokerage Services Ltd in a four-year-old incident where it was alleged to have helped Asian Development Bank synchronise deals in the Global Trust Bank stock with stockbroker Mr Ketan Parekh. The absolution comes several months after SEBI's own enquiry officer recommended a four-month suspension for ICICI Brokerage (IBSL), which, he found, had helped ADB sell one crore GTB shares in a structured manner to certain entities owned by Mr Parekh. Disagreeing with the enquiry officer, Mr G.N. Bajpai, Chairman, SEBI, in an order dated September 9 said, "There is no finding in the enquiry report that the broker has violated any of the provisions of the SEBI regulations. The charge of synchronisation was found improbable... The enquiry officer has also failed to take into account the improbability of institutions such as ADB and the broker (IBSL) indulging in manipulative practices while recommending the penalty... " According to Mr Bajpai, the enquiry officer, who investigated IBSL's trades, also did not have the advantage of certain letters that ADB wrote SEBI later on saying that IBSL was merely acting out its instructions. Interestingly, in a separate order, SEBI has warned Indsec Securities and Finance Ltd, also accused of synchronised trading in GTB shares with ADB, for not having done proper due diligence while dealing with clients. Indsec, one of the biggest counterparties to GTB stock traded by IBSL, was also let off on the count of synchronised dealing. In yet another order, the SEBI Chairman has upheld an enquiry officer's recommendation to suspend Mukesh Babu Securities for one year for synchronised trading in the GTB stock.
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