Sebi suspends BSE broker
Bombay Stock Exchange broker Jayantilal Khandwala & Sons' certificate of registration has been suspended for a month.india Updated: Sep 11, 2006 20:41 IST
Market regulator Securities and Exchange Board of India (Sebi) has suspended the certificate of registration of Bombay Stock Exchange (BSE) broker Jayantilal Khandwala & Sons for a period of one month for indulging in irregular transactions in the scrip of DSQ Software Limited.
Sebi, however, considerably cut down its earlier suspension order of four months pronounced on October 30, 2004, to just one month in the order issued by Sebi whole-time member G Ananthraman.
The broker indulged in synchronised trading in the scrip of DSQ Software for his client DSQ Holding, an arm of DSQ Software which created artificial volumes in the market, Sebi found during its investigations.
In these synchronised tradings, both the buyer and seller were DSQ Holdings. Among such instances, particularly on July 4, 2000, the value of the transaction for 2.5 lakh DSQ Software shares was Rs 24.37 crore and similarly on November 16, 2000, for one lakh DSQ shares it was Rs 4.41 crore.
During investigation ,it was admitted by the broker that huge orders were placed from the office of Dinesh Dalmia, Director, DSQ, which further established the fact that the broker was not acting in good faith, Sebi said.