Sebi today barred stock broker Madhuvan Securities from taking fresh assignments for alleged manipulative trading in the shares of Adani Exports Ltd (AEL).
According to an order by the Securities and Exchange Board of India (Sebi), Madhuvan Securities facilitated its clients to execute structured and self trades which created volume in the scrip of AEL.
The manipulative trades were executed by Madhuvan in NSE between January 1999 and March 1999 on behalf of Abhinav Investments and Prerak Capital Services.
The regulator said, by indulging in such trades, the entity violated certain provisions of the Sebi (Prohibition of Fraudulent and Unfair Trade Practices) Regulations and SEBI (Stock Brokers and Sub-brokers) Regulations.
"As regards the violations of Brokers Regulations, I note that as a stock broker Madhuvan should have adhered to the mandatory provisions of SEBI Act and regulations made thereunder," Sebi Whole Time Member S Raman said.
"They should have been more careful and cautious to ensure that the transactions which were fraudulent and manipulative in nature were not executed through it," he added imposing a ban of five working days.
In the same case, the regulator had earlier debarred Madhuvan's clients Abhinav Investments and Prerak Capital.
Sebi said, that the order shall come into force on the expiry of 21 days from the date of its issue.
