The Supreme Court has admitted a petition filed by market regulator SEBI alleging that stockbroking firm Jagruti Securities had manipulated scrips of JIK Industries Ltd in 2003.
A bench headed by Justice Dalveer Bhandari has admitted the plea that sought the quashing of the sectoral tribunal's verdict that gave a clean chit to the broking firm and also set aside the penalty of Rs 10 lakh imposed by the stock market watchdog.
SEBI had held Jagruti Securities, a member of the Bombay and National Stock Exchanges, guilty of executing trades on behalf of its clients Axtel Industries Ltd and Ameet Parikh with the intent of artificially raising the JIK Industries Ltd's scrip price.
It alleged that the trader violated the SEBI (Prohibition of Fradulent and Unfair Trade Practices Relating to Securities Market) Regulations, 1995.
Challeging the Securities Appellate Tribunal's judgment, SEBI said that the firm indulged in "fradulent and unfair trade practices" on most of the days during the investigation period between January 23 and April 1, 2003.
The investigation had revealed that the public holding in JIK's equity was a meagre 5.11 per cent compared to the promoter's holding at 72.82 per cent, the petition filed through counsel Pratap Venugopal stated.