The Hindu Business Line : Sub-broker fined Rs 6 lakh for rigging

Mumbai, Sept. 2 Capital market regulator Securities Exchange Board of India has imposed a fine of Rs 6 lakh on the proprietor of S K Enterprise, Mr Joban M. Shah, for manipulating the stock of SOFTBPO Global Services Ltd (SGSL) during 2004-05.

Artificial price

SEBI, in its order passed on August 29, alleged that S K Enterprise raised the price of the Z category scrip by placing continuous buy orders at higher prices, thereby creating artificial price rise in the market. It was also observed that the broking firm placed buy orders on various occasions before starting of day trading sessions, which led to establishing the opening price at higher levels that were often at the upper price circuit rates.

SGSL’s price shot up by 1,415.79 per cent from Rs 15.20 to Rs 230.40 during May 2004 to March 2005, the order said.

SEBI found that S K Enterprise, a sub-broker of KNC Shares & Securities Private Ltd, purchased 1,850 shares on behalf of its client Mr Shah by executing 26 trades out of the total of 59 trades executed in the SGSL scrip for 4,800 shares during the period of investigation.

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