Sebi cancels DKB’s registration

Securities and Exchange Board of India (Sebi) has suspended registration of foreign brokerage house Dresdner Kleinwort Benson Securities (India) Ltd (DKB) for eighteen months with immediate effect for its involvement in manipulating scrip prices along with Ketan Parikh firms. Though DKB had surrendered certification of registration of its own to capital market regulator, it was not accepted due to the pending enquiry proceedings against it.

DKB had submitted that if client manipulate the trades without the knowledge or the involvement of the broker, the stock broker cannot be blamed.

DKB had admitted that Kartik Parikh, brother of Ketan Parikh, told it that if DKB puts the order at specific price and quantity, the trade order would be executed, Sebi said.

“This should have alarmed DKB on the intentions of its clients. I find total complacency and negligence on the part of DKB, which it eventually admitted during the hearing”, Sebi whole time board member A K Batra said in an order dated April 29, 2004.