Sebi lets off 8 entities in Gayatri Projects case

Sebi today disposed of the case against eight entities, including brokers, in a matter related to alleged fraudulent dealings in shares of Gayatri Projects.
The Securities and Exchange Board of India (Sebi) show cause notice had alleged that four entities -- BP Fintrade, Setu Securities, Hitesh Shashikant Jhaveri and J V Stock Broking -- had entered into self trades in Gayatri Projects' shares on BSE on several occasions.
It was further alleged that on all occasions, the self trades were executed through their respective brokers -- BP Equities, Mansi Share & Stock Brokers, SPS Share Brokers, and SPFL Securities.
The brokers were charged of violating the broker norms.

The alleged self trades had created artificial volume in the scrip, leading to false and misleading appearance of trading in the scrip in the securities market.
In an order today, the market regulator said the evidence and material available on record "is insufficient" to hold that the trades executed by -- BP Fintrade, Setu Securities, Hitesh Shashikant Jhaveri and J V Stock Broking -- "created artificial volume in the scrip (leading to a false and misleading appearance of trading) in as much as there were very few and negligible instances of self trades".

Sebi also noted that there wasn't any allegation against these 4 entities that they had indulged in price manipulation.

"Accordingly...Their respective brokers...Cannot be held guilty of violating the provisions of law," Sebi said.
"...Hereby conclude that the charges levelled against the noticees (8 entities) in the SCN do not stand established and the matter is, accordingly, disposed of," it added.
The self trades were carried out on various occasions in the 2009.