January 12, 2006
PR No. 21/2006

Order against M/s. GNH Global Securities Ltd., Member, BSE

Shri Madhukar, Whole Time Member, SEBI, has passed an order on December 30, 2005 against M/s. GNH Global Securities Ltd., Member, The Stock Exchange, Mumbai under Regulation 13(4) and 13(6) of SEBI (Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002 in the matter of M/s. Kreb Biochemicals Ltd. (KBL) directing that no action be taken against M/s GNH Global Securities Ltd. and the broker to be remain cautious and careful in future in the conduct of its business. 
 
SEBI had conducted an investigation into the dealings of KBL during 1998. It was brought out that the price of the scrip went up from Rs. 81/- per share in March 1998 to a high of Rs. 304/- per share on 02.06.98. Investigations revealed that three entities CDP Fincap, Damayanti Finvest and Rituja Finvest had enrolled as common clients to some members of BSE and NSE and had traded in the scrip of KBL acting in concert with one another. The said three entities were related with each other. M/s. GNH Global Securities Ltd. had traded in the scrip of KBL for CDP Fincap and Damayanti Finvest and the enquiry proceedings were initiated.
 
On receipt of the report from Enquiry Officer, Show Cause Notice was issued to M/s. GNH Global Securities Ltd. No reply was received from the member for the Show Cause Notice issued to it. After considering the findings brought out by the Enquiry Officer that M/s. GNH Global Securities Ltd. had not violated the provisions of Clause A2 of the Code of Conduct for Stock Brokers as mentioned under schedule II of Regulation 7 of SEBI (Stock Brokers and Sub-brokers) Regulations, 1992, it has been directed that no action be taken against M/s. GNH Global Securities Ltd. Member is also directed to remain cautious and careful in future in the conduct of its business.
 
 
Mumbai

January 12, 2006