AMARA RAJA BATTERIES LTD.

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/sub-broker and observed that they were guilty of violating the provisions of SEBI Regulations:

• Alba Capital Markets Pvt. Ltd., Member NSE

• Khandwala, Shah and Associates, Sub-broker

• Bid Securities Pvt. Ltd., Sub-broker

These brokers/sub-brokers were inter-alia given an opportunity of personal hearing before Chairman, SEBI, which was availed by them. SEBI after considering the facts, reply and their submissions at the time of Chairman’s hearing, found them guilty of violating the provisions of SEBI regulations and suspended Alba Capital Markets Pvt. Ltd. for a period of three Months, while Khandwala Shah & Associates and Bid Securities Pvt. Ltd. have been suspended for a period of one year and six months respectively. These orders shall come into effect from July 15, 2002.