Sebi suspends five brokers for illegal trading

Securities and exchange board of India (Sebi) has suspended five stock brokers for illegal trading through an order passed by T C Nair, wholetime member, Sebi said.

The five brokers, whose certificate of registration has been cancelled with effect from July 18, 2006, are Bansal Sharevest Services (BSSL) and its four sub-brokers - Pradeep Kumar Bansal, Rajiv Bansal, Mudit Garg and Summet Garg.

During investgations by Sebi, it was found that BSSL and its sub-brokers were involved in illegal trading and other irregularities during the period July 21-23, 2003.

The inspection of the trading during the above period revealed illegal trade executed by BSSL and its sub-brokers outside the stock exchange as well as offering illegal facilities like smaller lot-size of trades, longer settlement periods, non-levying of service tax and transaction charges, etc, the Sebi order said.