Sebi finds violation by Jardine but lets off with warning

Sebi had ordered an investigation into the buying, selling or dealing in the shares of SBI by various intermediaries including Jardine Fleming India Broking (JFIBL), a member of the NSE and registered as a broker with Sebi. Copthall Mauritius Investment Limited a sub account of Fledgling Nominees International (FNIL) and part of the Jardine Fleming Group was a client with JFIBL.

During the course of the investigation, it was found that JFIBL’s position had been auctioned a number of times on the exchange on grounds such as ‘shares not available, client failed to deliver stocks and so on.’ It was also found that FNIL had for their sub account CMIL, squared off transactions in some scrips including SBI, without giving or taking deliveries.

After considering the facts emerging from the investigation report, an enquiry officer was appointed to conduct an enquiry into the affairs of FNIL and in respect of their dealings in the scrip of SBI and the alleged violations noticed during the investigation as regards the provisions of the Sebi Act, 1992, and bye-laws of exchanges.