The Securities and Exchange Board of India (Sebi) has asked the Calcutta Stock Exchange to furnish transaction details of the top ten brokers who have traded in the ITC stock between April and August, the identity of their clients and also whether the concerned brokers have operated on their own account or on behalf of the clients.
Broking circles are abuzz with the Sebi diktat seeking details of nearly 11 settlements from April to August 1997. The identities of the brokers are being kept a secret at the exchange.
"It is difficult to name only top ten brokers who have traded in the stock simply because the list of top ten brokers in one settlement is different from those who have traded in the next settlement or the settlement after that and is rarely identical, except for a couple of names which has occurred in more than one settlement.
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The best option, in such a situation, was to provide information on the basis of each settlement to give a clearer picture", said the source. It is understood that nearly 40 major CSE brokers or broking outfits would come under scrutiny as a result of the securities watchdog's requisition for details of the top ten brokers, their clients name and other transaction details at the earliest possible.
According to sources, identification of the top buyer or the seller of the ITC stock might prove to be a Herculean task for Sebi as "the broker (or the broking outfit who has done the transaction on behalf of his client) might have carried the deal in a third name to keep the identity of the buyer/seller hidden from any investigation in the near future".
The ITC stock, at the Calcutta Stock Exchange, remained firm hovering above Rs 500 in August (on an average), even touching Rs 573.90 on August 14, despite adverse reports of investigations by government authorities and showcause notices to top company executives.
Late last year too, the securities watchdog had sought details on trading volume, price movement and names of the top ten brokers on gross and net basis as well as details of settlement regarding deliverable quantity and auction. Simultaneously, it had instructed both the Bombay Stock Exchange as well as the local bourse to fix a circuit breaker on the ITC scrip.
While BSE officials had halved the price band to five per cent, the CSE governing board fixed the upper limit for ITC stock at Rs 256 and the lower limit at Rs 232. This, given an opening quote of Rs 248 at the time, worked out to around a five per cent band either way.
The price band at the National Stock Exchange, however, remained fixed at seven per cent.
Broking circles are abuzz with the Sebi diktat seeking details of nearly 11 settlements from April to August 1997