Citizens' Issues
Government advises states to act against illegal share trading

Union Government and SEBI had also written to all the State Governments and Union Territories advising them to take urgent steps to contain illegal trading

New Delhi: The Union Government said it has advised States and Union Territories to take urgent steps to tackle illegal trading of shares, reports PTI.

 

The Securities and Exchange Board of India (SEBI) has received complaints against some entities alleging illegal trading of shares in various parts of the country, Minister of State for Finance Namo Narain Meena informed the Rajya Sabha.

 

"... the Government of India and SEBI had also written to all the State Governments and Union Territories advising them to take urgent steps to contain illegal trading. SEBI on its part has initiated training programmes and guidance to State Police Departments to deal with instances of illegal trading," Meena said in a written reply.

 

This was done to impress upon the state governments to take appropriate and timely action on the issue, he added.

 

Meena noted that SEBI, in 2006, had made it mandatory for stock brokers to report off-market transactions to the stock exchange.

 

According to the Minister, SEBI has taken enforcement action against a few intermediaries registered with it, including passing restraint orders and quasi-judicial proceedings.

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COMMENTS

Vaibhav Dhoka

4 years ago

SEBI is always shy of taking action on INTERMEDIARIES even though it knew that intermediary has flouted rule and regulation.As reported earlier in this column SEBI is shy of taking action on Kotak Securities Ltd for duping me to the tune of Rs 1500000-00 way back in 2004. Kotak used franchisee as mod-us operindi to to effect this loot. Kotak sec.ltd very well knew that only registered INTERMEDIARIES are allowed to deal thro' exchanges,he introduced him with ulterior motive of loot investor.He used alibi of SLBS scheme permitted by SEBI to only THREE entities and one of them was Kotak securities Ltd. Franchisee who did business on Registration of Kotak securities Ltd was fly by night agent who disappeared one night.All securities agencies i.e. SEBI/NSE/BSE have one common rule i.e REGISTRATION.And rule further says that all INTERMEDIARIES should trade thro' registered intermediaries and IF THEY DEAL THRO' UNREGISTERED INTERMEDIARIES they are liable for all acts of commission and omission by such broker.
SEBI sends complaint to NSE/BSE with NO ACTION by them.Now SEBI says STATE government should initiate action,when it is SUPREME authority to take action.
In my complaint to Pune police commissionaire,who without going through complaint told that the complaint is within SEBI's purview.
One stance that complaint pertained to securities transaction and therefore SEBI is correct authority is right,but his direction was total unlawful as there is criminal aspect to frauds and cheating,for the reason all know very well.
Therefore SEBI's reply to Ministry of Finance that it has initiated action on few intermediaries is HALF TRUTH.
I request SEBI or state authorities to initiate action against broker and against Complainant if allegations are found to be false on inquiry.
The reason is SEBI/NSE/BSE and Police authorities very well knows common man cannot afford to GO TO Courts and complaint will die naturally.And our judiciary is unpredictable and notorious for delay.
IS someone from above authorities listening.

REPLY

NSriramamurty

In Reply to Vaibhav Dhoka 4 years ago

These Instructions to State Govt.s may help you to tell Police to take your KSL's Franchise ,who duped your Rs.15 Lakhs.Money Life may help you to get a copy of Letter to States , to enable you to Show to Police.
SEBI / NSE / Bse's inaction of your Complaints is deplorable .

MOHAN

4 years ago

STOCK GURU "opens" the eyes of the Government !

SEBI seeks more powers to deal with defaulters

According to Minster, there were 1,290 defaulters while the total penalty imposed on them was...

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SEBI slaps Rs1 lakh fine on Bilcare CMD

SEBI said Bilcare CMD Bhandari bought 5.60 lakh shares or 17.6% stake, taking his stake to 22.43% in the company but failed to submit a mandatory report

 
Mumbai: Market regulator Securities and Exchange Board of India (SEBI) said it has imposed a penalty of Rs1 lakh on Bilcare's CMD Mohan H Bhandari for failing to submit a mandatory report regarding his acquisition of company's shares.
 
SEBI slapped a fine of Rs1 lakh on Bilcare Chairman and Managing Director (CMD) Bhandari and said the penalty is "commensurate with the default committed by the Noticee (Bhandari)".
 
The regulator said it had carried a probe into the shares of Bilcare during 1 January -11 December 2003.
 
The investigation had revealed that Bhandari had acquired 5.60 lakh shares representing 17.6% stake. As a result of the acquisition, the shareholding of Bhandari increased to 22.43% on 5 September 2003 from 5.37% on 1 April 2003.
 
As per the norms, an acquirer is required to submit a report about the share acquisition to SEBI within 21 days of the transaction. Thereafter, the person is entitled to exercise 15% or more of the voting rights in the company.
 
However, Bhandari failed to submit the report, SEBI said.
 
The regulator said it also observed that Bhandari was eligible for exemption under the regulations as it was an inter-se transfer amongst promoters. But, he did not claim exemption, requiring him to submit the report, it added.
 

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COMMENTS

Vaibhav Dhoka

4 years ago

SEBI is going to KILL the investor(SMALL) community with its actions which are anti INVESTOR.It has reduced investors entry into mutual fund and stock market with HARASSING regulations.They are Draconian in nature.When it comes to take action on INTERMEDIARIES it is the TIMIDEST authority.

Piyush I Shah

4 years ago

If Decession of 2003 is taken in 2012 by SEBI, just imagine How Fast SEBI actually working in the direction of Investor/Aam Aadmi Interest.

Where as on other hand they come out with various 'Fatvas' like New KYC norms & what Not for common people to be imposed with Immidiate effect.

Surprisingly No action for various company's Price Rigging/Manuplation & companies/Brokers Not following various Norms as per listing & other Aggrements.!

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