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Sebi suspends four broking firms in Amara Raja price rigging

The Securities and Exchange Board of India has suspended four broking firms, two of them members of BSE and two of NSE, for their complicity in manipulating the prices of Amara Raja Batteries during August 2000 and March 2001.

SEBI has suspended brokerages Madhukar C Sheth (BSE) and Sheth Securities Pvt Ltd (NSE) for two years, and T J Stock Broking services Pvt Ltd (BSE) and LKP Securities Ltd (NSE) for one month and fifteen days, respectively.

The suspension orders will be effective from June 27, SEBI said.

The capital market regulator had investigated the role of brokers on the Bombay Stock Exchange and National Stock Exchange for manipulating in the shares of Amara Raja Batteries during August 2000 and March 2001.

It was found that these four broking firms had violated the provisions of the SEBI (stock brokers and sub-brokers) regulations 1992, and SEBI (prohibition of fraudulent and unfair trade practices relating to the securities market) regulations 1995, an official release said.

UNI

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