June 19, 2007
PR No. 191/2007

Order in the matter of dealing in Futures and Options Contracts on the 

National Stock Exchange

Shri G.Anantharaman, Whole Time Member, SEBI, has passed an order dated June 18, 2007 in the matter of dealing in Future and Option (F&O) segment on the National Stock Exchange (NSE) directing that: 

a) Entities - Rakhi Trading P. Ltd, Kasam Holding P. Ltd, Tungarli Tradeplace P. Ltd, Manu Vyapar P. Ltd, Raj Corporation Ltd., TLB Securities Ltd, Amar Mukeshbhai Shah, Shah Chirag Kirtikumar, Amit Business Ltd and Suresh Bharrat are directed to cease and desist from indulging in futures & options contracts in violation of SEBI (Prohibition of Fraudulent and Unfair Trade practices relating to securities market) Regulations, 2003 till further orders.

b) Brokers � Kumar Share Brokers Ltd., CPR Capital Services Ltd., SMC Global Securities Ltd., Khandwala Int. Fin. Ser P. Ltd, Shilpa Stock Brokers P. Ltd., Angel Capital & Debt Market Ltd, Vibrant Securities Pvt. Ltd., Systematix Shares & Stk (India) Ltd, Steel City Securities Ltd, Ashika Stock Broking Limited, Prashant Jayantilal Patel, Indiabulls Securities Ltd., PSJ Securities P ltd., Pratibhuti Vinihit Ltd. and Manu Stock Broking (P) Ltd. are directed to cease and desist from indulging in futures & options contracts in violation of SEBI (Stock Brokers and Sub brokers) Rules and Regulations, 1992 till further orders.

Preliminary examination of the transactions in the F & O segment in the NSE for the period January to March 2007 brought out that the brokers and clients at NSE were buying and selling almost equal quantities of contracts within the day and such buy/sell was synchronized in nature. In most of the cases, the same quantity and in few cases substantially the same quantity of the original trade was closed out /reversed during the day at a price which was significantly above or below the price at which the first/original transaction was executed, without significant variations in the traded price of the underlying. The entities /brokers have indulged in non genuine trade transactions to create false and misleading appearance of trading and for booking profit/losses on such transactions. The findings of the preliminary examination brought out prima facie violation of SEBI (Prohibition of Fraudulent and Unfair Trade practices relating to securities market) Regulations by the client entities and of the SEBI (Stock Brokers and Sub brokers) Rules and Regulations, 1992 by brokers. The findings brought out the need for immediate and appropriate action at this juncture to check such abuses in future and accordingly an ad-interim order has been passed to ensure orderly development of the options market and the directions therein are accordingly based.

 
Mumbai

June 19, 2007

For full copy of order against AMAR MUKESHBHAI SHAH, click here.

For full copy of order against AMIT BUSINESS LTD., click here.

For full copy of order against ANGEL CAPITAL & DEBT MARKET LTD., click here.

For full copy of order against ASHIKA STOCK BROKING LTD., click here.

For full copy of order against CPR CAPITAL SERVICES LTD., click here.

For full copy of order against INDIABULLS SECURITIES LTD., click here.

For full copy of order against KASAM HOLDINGS PVT.LTD., click here.

For full copy of order against KHANDWALA INTEGRATED FINANCIAL SERVICES PVT.LTD., click here.

For full copy of order against KUMAR SHARE BROKERS LTD., click here.

For full copy of order against MANU STOCK BROKING (P) LTD., click here.

For full copy of order against MANU VYAPAAR PVT.LTD., click here.

For full copy of order against PRASHANT JAYANTILAL PATEL, click here.

For full copy of order against PRASHANT JAYANTILAL PATEL,M/S, click here.

For full copy of order against PRATIBHUTI VINIHIT LTD., click here.

For full copy of order against PSJ SECURITIES PVT.LTD., click here.

For full copy of order against RAJ CORP.LTD., click here.

For full copy of order against RAKHI TRADING PVT.LTD., click here.

For full copy of order against SHAH CHIRAG KIRTIKUMAR, click here.

For full copy of order against SHILPA STOCK BROKER PVT.LTD., click here.

For full copy of order against SMC GLOBAL SECURITIES LTD., click here.

For full copy of order against STEEL CITY SECURITIES LTD., click here.

For full copy of order against SURESH BHARRAT, click here.

For full copy of order against SYSTEMATIX SHARES & STOCKS (INDIA) LTD., click here.

For full copy of order against TLB SECURITIES PVT.LTD., click here.

For full copy of order against TUNGARLI TRADEPLACE PVT.LTD., click here.

For full copy of order against VIBRANT SECURITIES PVT.LTD., click here.