Regulations
SEBI fines 2 brokers for fraudulent trading in shares of Exedy India

The market regulator has slapped a fine of Rs10 lakh each on ISF Securities and Vishwas Securities for executing trades amongst themselves in large quantities and creating artificial volume and price increase in the scrip of EIL

 
The Securities and Exchange Board of India (SEBI) on Tuesday imposed a total penalty of Rs21 lakh on two entities for alleged fraudulent trade practices in shares of Exedy India (EIL).
 
The market regulator has slapped a fine of Rs10 lakh each on ISF Securities and Vishwas Securities for executing trades amongst themselves in large quantities and creating artificial volume and price increase in the scrip of EIL.
 
In addition, the regulator has also imposed Rs1lakh fine on ISF Securities for violating stock broker norms which warranted “imposition of monetary penalty”.
 
“The noticees being SEBI registered stock brokers created artificial volumes, false appearance of trading and generated investor interest in the otherwise thinly traded scrip of EIL,” SEBI said in its order.
 
SEBI said that both the entities “offloaded their entire shareholding at artificially rigged up prices to gullible investors and after suspension of trading of the scrip by the BSE they do not have an exit opportunity”.
 
The matter relates to a SEBI probe into the dealings in the shares of EIL (erstwhile Ceekay Daikin) which had seen a sharp rise in the price at BSE during the period from 1st April to 31 October 2009.
 
It was revealed that ISF Securities dealing in its proprietary account and Vishwas Securities dealing through trading member SIC Stocks and Services executed trades amongst themselves in large quantities and created artificial volume and price increase in the scrip of EIL.
 
Both had also executed self trades which were fictitious in nature, SEBI said.
 

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Govt to issue 1 billion units of Rs10 plastic notes in 5 cities

Minister of state for finance Namo Narain Meena said the field trial will be conducted in five cities—Kochi, Mysore, Jaipur, Bhubaneswar and Shimla with varied geographical locations and climatic conditions

The government has decided to issue one billion pieces of Rs10 bank notes made of plastic on a field trial basis in five cities, minister of state for finance Namo Narain Meena said in Parliament on Tuesday.

 

“It has been decided by the government and the RBI (Reserve Bank of India) to introduce one billion pieces of Rs10 notes in polymer/plastic on a field trial basis,” the minister said in a written reply to the Rajya Sabha.

 

He said the field trial will be conducted in five cities—Kochi, Mysore, Jaipur, Bhubaneswar and Shimla with varied geographical locations and climatic conditions.

 

“The RBI has informed that while the primary objective of introduction of polymer notes is to increase its life, it could also help in combating counterfeiting,” he added.

 

In reply to a separate question, Meena said various agencies such as the RBI, ministry of finance, ministry of home affairs, security and intelligence agencies of the Centre and states, Central Bureau of Investigation (CBI) are working in tandem to thwart the illegal activities related to Fake Indian Currency Notes (FICN).

 

He also said the work of these agencies is periodically reviewed by a nodal group set up for this purpose.

 

“Further, one special FICN Coordination (FCORD) group gas been formed in the ministry of home affairs to share the intelligence/information amongst the different security agencies of state/Centre to counter the menace of circulation of fake currency notes in the country,” he added.

 

Meena said National Investigation Agency (NIA) has been empowered by NIA Act to investigate and prosecute offences relating to FICN.

 

“The government has also constituted a Terror Funding and Fake Currency Cell in NIA to focus investigation on terror funding and fake currency cases,” he said.

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COMMENTS

S BHASKARA NARAYANA

4 years ago

Increases life the note is OK. But, I can't understand how the objective of field trial in 5 cities can be judged for Rs.10/- note, while the FICN is noticed mostly higher denomination notes, viz., 1000, 500 and 100 alone.

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