Market regulator the Securities and Exchange Board of India (Sebi) today retained its 2004 order cancelling the registration of four stock brokers involved in rigging Ranbaxy share prices in 1999.
Further, it disposed of enquiry proceedings against the brokers as they no longer had a role in the securities market.
"I note that the order of Sebi passed on March 8, 2004, stands in place, by which the registrations of noticees were cancelled," the regulator said.
The brokers who were engaged in synchronised deals of the scrip between January and October, 1999, are NH Securities, KNP Securities, VN Parekh Securities and Triumph Securities.
During the 10-month period, the Ranbaxy's scrip rose from Rs 270 to Rs 1,200. The price rise was accompanied by a significant increase in trading of the scrip, it said.
Sebi said the brokers executed the deals mainly with Ketan Parekh group associates. The brokers, however, said the deals were not done in collusion with Parekh's entities.
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After the 2004 cancellation of registration, Sebi sent show cause notices to the brokers asking them why an appropriate penalty, including cancellation of their licences should not be imposed.
"The argument of noticees appears to be baseless and devoid of any merits...," Sebi noted after considering the contentions raised by the brokers on March 9, 2010.