October 24, 1997
PR No. 126/1997

SEBI SUSPENDS TWO BROKERS OF 
NATIONAL STOCK EXCHANGE OF INDIA LIMITED AND 
WARNS ONE BROKER OF THE STOCK EXCHNAGE, MUMBAI 
INVESTIGATIONS, ENFORCEMENT AND SURVEILLANCE DEPARTMENT 

SEBI had conducted investigations into the dealings of certain broking concerns which revealed that these entities had indulged in huge short selling with a view to depress the prices of securities. It was also revealed that one of the entities had also introduced fake shares. On the basis of the report submitted by the Enquiry Officer, SEBI issued show cause notices to the brokers. Two of the brokers viz. M/s. Libra Management Services Limited & M/s. Vipul Securities Limited, members of National Stock Exchange of India Limited did not even respond to the show cause notice and did not avail of any hearing. SEBI has considered them guilty of violating the SEBI Act, 1992, and the SEBI (Stock Brokers and Sub-brokers) Regulations, 1992, and has passed the penal orders as mentioned against their names. M/s. Libra Management Services Limited, Member of NSE has been suspended for a period of two years w.e.f. October 30, 1997. M/s. Vipul Securities Limited, Member of NSE has been suspended for a period of two years w.e.f. October 30, 1997 and M/s. Ramesh Biyani, Member of The Stock Exchange, Mumbai has been warned not to repeat the violations in future.