Sebi cracks down, suspends CSFB for rigging8230;

For the second time, the Indian market regulator has suspended stock broker Credit Suisse First Boston CSFB for one month after it found that the multinational rigged the shares of South East Asia Marine Engineering

For the second time, the Indian market regulator has suspended stock broker Credit Suisse First Boston CSFB for one month after it found that the multinational rigged the shares of South East Asia Marine Engineering Seamecl.

In its investigation, the Securities and Exchange Board of India found that the scrip of Seamecl, earlier known as Peerless Shipping, jumped from Rs 15 to Rs 389 within eight months. Sebi had earlier banned CSFB for trading for two years in a similar price rigging case in early 2001.

In the latest case, Sebi found that CSFB bought 12.55 lakh shares and sold 8.57 lakh shares at NSE and bought 7.65 lakh shares and sold 9.46 lakh shares at BSE. CSFB, on behalf of another broker CML, also bought 12.55 lakh shares and sold 7.03 lakh shares at NSE and bought 3.63 lakh shares and sold 8.68 lakh shares at BSE.

Sebi investigations revealed that CSFB entered into several trades and deals which influenced the price and volume of the scrip of Seamecl in violation of its Prohibition of Fraudulent and Unfair Trade Practices Regulations.

Slams Indusind8217;s DP unit

MUMBAI: The Sebi has suspended Indusind Bank and Integrated Entreprises as a depository participant for 15 days after it found both failed to maintain proper checks and balances while verifying records of its client DSQ Software which had defrauded investors to the tune of millions.

The market regulator said following investigations into the DSQ Software, it found irregularities in the allotment of shares by the company, in the demat of the shares allotted and in the sale of the shares allotted by several brokers and entities associated with the promoters of the company.

Sebi investigations further found irregularities in opening the demat account in the name of 8216;Dr. Suryanil Ghosh, Trustee Softech Corporation8217;. Of the 13 million unlisted shares DSQS floated in the secondary market, 4 million shares came through the beneficiary account opened with IBL.

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Sebi found that verifications were not been carried out by both the depositories while accepting the crucial documents without minimum scrutiny as mandated from DSQ.