NEW DELHI (INDIA): Markets regulator Sebi has disposed of a case against nine entities for allegedly involving in fraudulent trading in the shares of Unitech Limited.
The markets watchdog conducted a probe in the share trading of Unitech, to ascertain possible violation of PFTUP(Prohibition of Fraudulent and Unfair Trade Practices) norm a sand stock broker regulation, during the period from October-December, 2008.
The investigation examined the role of the nine entities– Genuine Stock Brokers, Trans global Securities, BLB Ltd, OPG Securities, Ambit Securities Broking, Total Securities, NissarBrothers, Kaushik Shah Shares & Securities and Prashant Patel– with respect to synchronised, circular, reversal as well asself-trades and new low/high price analysis.
Sebi found that these entities “entered into self-tradeson multiple occasion, yet the volume of self-trades vis-a-vistotal volume in the shares of Unitech is miniscule. No malafide intention behind self-trades executed by the noticeeshave been brought out in investigation”.
In an order passed today Sebi Chief General Manager andAdjudicating Officer Nagendra Parakh said: “There is noevidence in the investigation report to suggest any fraudulentintention behind execution of self-trades by the noticees.Self-trades occurred because of trading in same shares bymultiple trades/jobbers in brokers’ own account.
“The volume of self-trade is less than one per cent ofthe total volume in shares of Unitech Limited. The impact ofself-trades on LTP (last trade price) is also not significanton daily basis. Therefore, in compliance of Sebi policy”.
Accordingly, Sebi has disposed of the case against thenine entities.
Source: Press Trust of India