January 04, 2006
PR No. 05/2006

SEBI suspends four DSE stock brokers in the matter of

M/s. Mefcom Capital Markets Ltd.

Securities and Exchange Board of India (SEBI) has passed orders under regulation 13(4) of the SEBI (Procedure for Holding Enquiry by Enquiry Officer and Imposing penalty) Regulations, 2002, suspending the Certificates of Registration of four members of Delhi Stock Exchange (DSE) namely, M/s. B. K. Khullar & Co. [SEBI Reg. No. INB050454827], M/s. NSM Securities Pvt. Ltd. [SEBI Reg. No. INB051005531], M/s. Khushal Securities Pvt. Ltd. [SEBI Reg. No. INB051003631] and M/s. Paramjeet & Co. [SEBI Reg.No. INB050093016], for 30 (thirty) days. The orders shall come into force after three weeks from the date of the orders. 
 
The said stock brokers failed to maintain high standard of integrity, promptitude and fairness as they indulged in manipulative transactions to create false market in the scrip of M/s. Mefcom Capital Markets Ltd. while trading in the scrip immediately prior to the opening of its public-cum-rights issue in February 1995. Thus they failed to comply with clause A(1), (3), & (4) of Code of Conduct as specified in Schedule II read with regulation 7 of SEBI (Stock Brokers & Sub-brokers) Regulations, 1992.
 
The orders have been passed by Shri Madhukar, Whole-time Member, SEBI, on December 29, 2005. 
 
 
Mumbai
 
January 04, 2006