Sebi bans Anugrah Stock Broking from Buying & Selling
The Securities and Exchange Board of India on Monday ordered maintaining its ban on Anugrah Stock and Broking Private Ltd from trading in the securities market.
The ban was on account of Anugrah transacting for a client banned by SEBI in the Pyramid Saimira case.
Taking serious note of the violation of its prohibitory order on the client, Mr Banty Dinesh Shah, SEBI had on May 22 restrained Anugrah through an interim order.
Anugrah approached the Securities Appellate Tribunal (SAT) to lift the ban. During the hearing SEBI submitted that the broker’s representation would be considered on May 30 and an order passed on June 1. SAT adjourned the proceedings and the appeal will now come up for hearing on June 5 (Friday).
According to Sebi, it prima facie appears that process at brokers risk management level were so laxed that anybody could tinker with the system. As there has been serious breach of Sebi regulations, the market regulator will now be closely examining any collusion of the stock broker with the client in executing the trades.
