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Stock Market Regulator SEBI has restrained Ms Reena Bansal, wife of ICICI Securities sub-broker Rajeev Bansal, from transacting in the securities market.
In an ex-parte interim order on Thursday, the regulator directed the depositories NSDL and CDSL not to give effect to any debit instruction in the demat accounts of Ms Reena Bansal or in the demat accounts of any beneficial owner on the authority of power of attorney obtained by her or Rajeev Bansal.
SEBI started investigations into the case based on media reports and analysed data obtained from NSE, BSE, NSDL, CDSL and ICICI Securities. On analysis, SEBI came to a prima facie conclusion that Ms Bansal was acting as an unregistered sub-broker as follows:
Off market route
SEBI saw that shares of various companies that were being purchased in her account were subsequently transferred to the demat accounts of various clients through off market transfers during the period October 30, 2006 to December 13, 2010. She also received shares from various clients into her demat account through off market transfers and sold them in the market during the period May 18, 2006, and November 7, 2007.
The ICICI Bank account linked to her trading account showed that she had paid Rs 1.63 crore to and received Rs 1.56 crore from 54 clients.
SEBI, in its order, said that it was necessary to issue appropriate preventive ex-parte directions immediately against Ms Bansal — who has been acting as an unregistered sub-broker — to uphold the safety and integrity of the securities market and in the interest of investors, pending detailed investigation.
SEBI said that the order may be treated as a show cause notice to Ms Reena Bansal who may show cause within 15 days on why the directions passed in this order should not be continued, or avail the opportunity of a personal hearing at mutually convenient date within 15 days of this order and also inspect relevant documents a day prior to the personal hearing.
This order comes into immediate effect and SEBI has directed NSE, BSE, NSDL,CDSL and I-sec to ensure that directions in this order are strictly complied with.
> raghavendrarao.k@thehindu.co.in
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