SEBI disposes of enquiry proceedings against Adroit Financial
MDT/PTI 06 November 2012

SEBI had alleged that Adroit Financial Services along with another broker had entered into a number of cross deals, structured deals and synchronised deals which resulted into "creation of false market" for Shamken Multifab shares

 
Mumbai: Market regulator Securities and Exchange Board of India (SEBI) has disposed of the matter against Adroit Financial Services after the entity made a payment of Rs10 lakh to settle charges related to fraudulent trade practices in shares of Shamken Multifab Ltd, reports PTI.
 
In an order dated 1st November, SEBI said that "this consent order disposes of the aforesaid enquiry proceedings initiated against Adroit Financial Services Ltd".
 
A probe by SEBI into the scrip of Shamken Multifab Ltd found an increase in price and volume of its shares during 23rd February to 20th July 2000.
 
SEBI noticed that Adroit Financial Services along with another broker were having major concentration in trading.
 
The regulator alleged that Adroit Financial Services along with another broker had entered into a number of cross deals, structured deals and synchronised deals which resulted into "creation of false market".
 
Pending proceedings, Adroit Financial Services under SEBI's consent order mechanism offered to make a payment of Rs10 lakh as settlement charges.
 
Thereafter, a High Powered Advisory Committee (HPAC) considered the consent terms and recommended the case for settlement on payment of the said amount. The same was approved by SEBI.
 
In a separate consent order, the regulator dismissed the matter against Keynote Corporate Services after the entity made a payment of Rs 5 lakh to settle charges for allegedly failing to abide by norms for merchant bankers in the public issue of Consortex Karl Doelitzsch (India) Ltd.
 
SEBI in its order dated October 31 said that " this consent order disposes of the proceedings initiated against Keynote Corporate Services Ltd...It is clarified that the settlement in this order shall extend only to the charges levelled against the applicant in the said SCNs (Show Cause Notices)".
 
The matter relates to an enquiry by SEBI in the public issue of Consortex Karl Doelitzsch (India) Ltd.
 
SEBI alleged that Keynote Corporate Services as a lead manager, failed to render high standards of service, by not verifying the records/contents of the certificate of the auditor independently and "thus failed to exercise due diligence, proper care and independent professional judgement in the public issue of Consortex Karl Doelitzsch (India) Ltd".
 
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