Sebi suspends CS First Boston for 2 yrs

Sebi chairman G.N. Bajpai, after taking into consideration the enquiry report, reply of CSFB and submissions made during hearing vide its order date June 13, 2002, has suspended the registration of the broker, Sebi said in a release here.

As the order is with effect from last year, the suspension will remain only for one year. A Sebi investigation had earlier revealed that CSFB topped the list of 18 brokerages that carried out transactions of overseas corporate bodies (OCBs).

The Sebi report had observed that a number of OCBs and sub-accounts of FIIs had transacted in the so-called K-10 stocks heavily.

Sebi had ordered an investigation into transactions during January 2001 to March 2001, due to excessive volatility in the index of BSE and NSE and unusually volatile market behaviour during mid February 2001 to mid-March 2001 and also in view of possible attempts by certain entities including CSFB, to distort the true price discovery and manipulate the securities markets.

Sebi, in an interim order on April 18, 2001, had restrained CSFB from undertaking any fresh business as a stock broker till the completion of investigation/enquiry proceedings.