Sebi suspends CSFB for a month

Securities and Exchange Board of India (Sebi) has suspended the certificate of registration of Credit Suisse First Boston (CSFB) for a month, the order coming into force three months from now.

Incidentally, Sebi had suspended CSFB for two years by an order passed on June 16, 2002. That order was passed in respect of the dealings of the brokerage in scrips such as Adani Exports, HFCL, Zee Tele, GTB, DSQ Software and the investigation period was from April 2000 to March 31, 2001.

The current order pertains to the brokerage's dealing in the Ranbaxy Laboratories scrip between January 1 and October 31, 1999.

According to investigations made by Sebi, the share price of Ranbaxy had shot up from Rs 270 in January 1999 to Rs 1200 in October 1999. The price rise was also accompanied by an increase in volumes.

According to the Sebi investigations, CSFB indulged in synchronised trades in this scrip, resulting in the share price rising abnormally.