SEBI bars Angel Broking for 2 weeks over circular trading in Sun Infoways news
30 January 2013

The Securities and Exchange Board of India (SEBI) has barred Angel Broking Limited from taking up any new assignment (any new clients) for a period of two weeks for artificially boosting trade volumes in shares of software developer Sun Infoways Ltd.

SEBI also barred smaller brokerages Allwin Securities Ltd and Bharti Thakkar India Securities Pvt Ltd for carrying out circular trading in the shares of Sun Infoways between 5 February and 2 March 2001, with a view to boost volume and price of the scrip.

SEBI said the order would come into force 21 days from the date of the order (30 January 2013).

SEBI conducted investigations into the dealings in the scrip of Sun Infoways Limited (SIL) for the period from 5 February 2001 to 2 May 2001, inter-alia to ascertain violations, if any, of the SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 1995 (PFUTP Regulations).

During the period of investigation, there was consistent fall in the price of the scrip of SIL accompanied by low delivery. The price of the scrip of SIL had fallen from Rs342 as of 5 February 2001 to a low of Rs60.75 as of 30 April 2001 before finally closing at Rs73.75 on 2 May 2001.

SEBI had earlier also conducted an investigation into the scrip of SIL, for the period from February 2000 to August 2000, wherein the price of the scrip had increased from Rs10 in February 2000 to Rs696 in August 2000 and appropriate actions were initiated against the persons/ entities found in default.

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SEBI bars Angel Broking for 2 weeks over circular trading in Sun Infoways