SEBI said the broker Chotai had executed trades outside the trading mechanism provided by BSE and also tried to persuade BSE officials for not reporting the matter to the regulator
Mumbai: Capital market regulator Securities and Exchange Board of India (SEBI) has cancelled the registration of a Samir K Chotai as a stock broker for allegedly indulging in illegal trading activities that were not in the interest of the investors, reports PTI.
In its order, SEBI said Chotai failed to perform its duties as specified in the code of conduct for sub-brokers in the Broker Regulations.
"...hereby cancel the certificate of registration of the sub broker namely Samir K Chotai (trade name Om Shares and Securities)," SEBI said in its order issued on December 6.
SEBI said Chotai had executed trades outside the trading mechanism provided by BSE.
The regulator said it also observed that the enquiry report on the matter had noted that Chotai had attempted to persuade BSE officials for not reporting the findings of inspection to SEBI.
"Such attempts are unethical and unsuited to an intermediary who shares the responsibility of developing the securities market along with the regulator," SEBI said.
SEBI on receipt of certain complaints regarding illegal trading activities at Porbandar (Gujarat) advised the BSE to probe the entities concerned.
Accordingly, BSE carried out inspection of Chotai, a registered sub-broker operating under the trade name of Om Shares and Securities on 28 June 2004, the order said.
The inspection prima facie revealed that Chotai had indulged in illegal activities that were not in the interest of the investors.
Pursuant to the findings by BSE, SEBI in an interim order prohibited Chotai from accessing the securities market till the probe is completed and appropriate action taken upon receipt of the enquiry report.
The enquiry report submitted on 8 March 2011 recommended a penalty of cancellation of the Certificate of Registration of Chotai.
SEBI has also written to Sahara group to furnish the details of bank accounts and properties held by them so as to enable it to take recourse to appropriate legal remedies as per the Supreme Court directions
The Commission have received complaints alleging that some hospitals are not allowing parents to choose the bank to preserve their new born's stem cells
New Delhi: The Competition Commission of India (CCI) is investigating alleged unfair business practices by hospitals and stem cell banks that restrict parents from preserving a new born's stem cells at banks of their choice, reports PTI.
Stem cells can be differentiated into specialised biological cells and also have the ability to regenerate on its own. These cells, which can help in treating a variety of diseases, are generally taken from cord blood and bone marrow.
Sources said that CCI is looking into allegations of unfair market practices among hospitals and stem cell banks.
The Commission received a complaint alleging that some hospitals are not allowing parents to choose the bank to preserve their new born's stem cells, they added.
"Instead, they (parents) are asked to keep the stem cells at a particular bank with which the hospital has a tie-up. This practice is anti-competitive and restricts available choices," sources noted.
The Director General (DG), the Commission's investigative arm, is looking into the issue, they added. Among others, the fair trade regulator is probing the case under Section 3 of the Competition Act, that relates to anti-competitive pacts.
A new born's stem cells are preserved so that if necessary, these cells can be harvested to treat diseases in the future. They are taken soon after birth from the umbilical cord blood.
According to sources, India is a growing market for stem cells preservation and is currently estimated to be worth about Rs500 to Rs600 crore.
The Commission, which has the mandate to keep a tab on unfair trade practices, refers cases to the DG only after finding prima facie evidence.