Sebi disposes of case against stock broker

Capital market regulator Sebi today disposed of the matter against Siddhi Shares Private Ltd in a case related to stock broker violations in dealing with shares of Riba Textiles and Winsome Textile Industries.
Sebi in its show cause notice had alleged that the broker had executed self trades and synchronised trades in the shares of the two companies on behalf of its clients.
It was alleged that in the self trades and synchronised trades Siddhi Shares has acted as both stock broker and counter-party stock broker. Some of the trades were executed from the same terminal also.
In a order today, the Securities and Exchange Board of India (Sebi) said, "in the present matter there is no evidence available on record to suggest that the noticee was in any manner involved with its clients in executing the aforementioned self trades and synchronised trades".

"...Accordingly the present adjudication proceedings is disposed of," it added.
The market regulator had conducted a probe into the trading in the scrip of Riba Textiles and Winsome Textile Industries and noted that the price as well as volume in the shares of the two companies had increased significantly during the period January 1, 2009 to August 31, 2009.

In a separate order, the market regulator has imposed "a penalty of Rs 2 lakh" on Kavita Goyal for fraudulent trading in shares of Winsome Textile Industries.
According to Sebi, Goyal's "trading has led to false and misleading appearance of trading in the scrip and has also artificially increased the price of the scrip".

The case relates to trading in shares of Winsome Textile Industries between August 19-December 31, 2008.
Separately, Sebi has disposed of the matter against Mangeram Sharma in a case related to fraudulent trading in shares of Era Construction (India).
Sebi show cause notice had alleged that Sharma in collusion with certain stock brokers and clients, had executed synchronised trades and thereby created artificial volume in the shares of ERA, during the period from March 17, 2004 to November 12, 2004.
"Considering the volume of trading by the noticee, I am of the view that such volume of trading is not enough to create artificial volume in the scrip as alleged," Sebi adjudicating officer D Ravi Kumar said in an order today.

"Hence, no contravention of provisions of PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) Regulations is proved against the noticee," Kumar added.
Meanwhile, Sebi has imposed "a penalty of Rs 2 lakh" on Innoventive Venture (formerly known as Platinum Ocean Energy) for not making annual disclosures regarding its shareholding pattern within the stipulated time.
The company had not made disclosures for the financial years 2005-06, 2006-07, 2007-08 and 2009-10.
The disclosures have to be made within 30 days from the financial year ending March 31 to the stock exchanges.