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Angel Broking + 3 barred in Sun Infoways case

Thursday, 31 January 2013 - 5:29am IST | Place: Mumbai | Agency: DNA
The Securities and Exchange Board of India (Sebi) has barred Angel Broking and three other firms from taking any new assignments for two weeks, for allegedly indulging in unfair and circular trading of shares.

The Securities and Exchange Board of India (Sebi) has barred Angel Broking and three other firms from taking any new assignments for two weeks, for allegedly indulging in unfair and circular trading of shares.

The regulator believes the four brokerages – Angel Broking, Allwin Securities, Bharti Thakkar India Securities and NCJ Shares and Stock Brokers – violated clauses of the code of conduct for stock brokers by dealing in shares of Sun Infoways during 2001 in a manner detrimental to the interest of other investors. While the first three have been barred for two weeks, the fourth has been suspended for a week.

The order would come into force on expiry of 21 days, the Sebi circular stated.

The Sebi probe found a consistent fall in the share price of Sun Infoways, accompanied by low delivery, that year. It found three different groups trading in the scrip of SIL in a circular manner. Of these, the group consisting of eight brokers/ sub-brokers that include the above four were found trading among themselves in circular manner, which led to the creation of artificial volumes in the market. “The total volume generated by the said group by way of circular trades was about 37.52% of the total quantity traded during the period of investigation,” said the Sebi circular.

Sebi noted that the occurrence of such synchronised deals, in a circular manner, persistently, cannot be said to be a coincidence.




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