June 14, 2002
PR No. 116/2002


SEBI investigated the role of brokers of BSE and NSE in the manipulation of Amara Raja Batteries Limited. during the period August 2000 to March 2001. It was found that brokers had violated the provisions of SEBI (Stock Brokers and Sub-brokers) Regulations 1992 and SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 1995.
As a consequential action, an enquiry officer was appointed as per the relevant regulation for taking action against the brokers under the appropriate Regulations. The enquiry officer has submitted his report to the Board in respect of following brokers and observed that these brokers were guilty of violating the provisions of SEBI Regulations:

  • Madhukar C. Sheth, Member BSE 

  • Sheth Securities Pvt. Ltd., Member NSE 

  • T. J. Stock Broking Services Pvt. Ltd., Member BSE 

  • LKP Securities Ltd., Member NSE

These brokers were inter-alia given an opportunity of personal hearing before Chairman, SEBI, which was availed by them. SEBI after considering the facts, reply of the brokers and their submissions at the time of Chairmanís hearing, found these brokers guilty of violating the provisions of SEBI regulations and suspended Madhukar C. Sheth and Sheth Securities Pvt. Ltd. for a period of two years. T. J. Stock Broking Services Pvt. Ltd. and LKP Securities Ltd. for a period of one month and fifteen (15) days respectively. The orders against these brokers shall come into effect from June 27, 2002.