February 14, 2009 1:04:22 am
The Securities and Exchange Board of India (Sebi) has barred Shankar Sharma,director of First Global Stock Broking Pvt Ltd and Vrudhi Confinvest India Pvt Ltd (VCIP),from the securities market for one year.
First Global Stock Broking manager and VCIP had indulged in large transactions in 10 securities (Global Telesystems,HFCL,DSQ Software,Zee Telefilms,Wipro,Satyam Computers,MTL,SBI,Infosys Technologies and Sterlite Opticals) in early 2001, said an order issued by Sebi whole-time director MS Sahoo.
As these trades for Shankar Sharma in his proprietary account,as a client of Bang Equity on the one hand and the trades of VCIP which is 100-per cent owned by Shankar Sharma and Devina Mehra,as a client of FGSB,resulted in large-scale synchronisation which resulted in creation of large artificial volume in those shares,I hold Shankar Sharma guilty for synchronising the trades in violation of regulation 4 (b) (c) and (d) of PFUTP Regulations,1995, Sebis latest order said.
I find that the trading pattern of the noticees (Shankar Sharma and Devina Mehra) through Bang Equity and FGSB was of a highly irregular nature and establishes that Shankar Sharma had indulged in a concerted attempt to interfere with the smooth functioning of the market and acted in a manner,which erodes the confidence of the investors and adversely affects the integrity and the healthy growth of the market, the Sebi order said.
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