January 19, 2006
Order against M/s. Ramakrishna Sekhsaria, Member, BSE
Shri Madhukar, Whole Time Member, SEBI, has passed an order on January 12, 2006 against M/s. Ramakrishna Sekhsaria, 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 the broker to be careful in the future and not to carry on activities of the nature carried out in the scrip of M/s. Kreb Biochemicals Ltd.
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. Ramakrishna Sekhsaria had traded in the scrip of KBL for Damayanti Finvest and the enquiry proceedings were initiated.
On receipt of the report from Enquiry Officer, Show Cause Notice was issued to M/s. Ramakrishna Sekhsaria. After considering the submissions made by the member and the findings brought out by the Enquiry Officer that M/s. Ramakrishna Sekhsaria had violated the provisions 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, the broker is directed to be careful in the future and not to carry on activities of the nature carried out in the scrip of KBL.
January 19, 2006