Anand Rathi has been found not guilty of insider trading,
according to enquiries conducted by the Securit ies and Exchange
Board of India (Sebi).
have suggested that investigations by Sebis enquiry officer
Piyush Gupta have shown no evidence of any kind of insider trading
by Rathi and his broking firms - Anand Rathi Securities, Rathi
Global and Rathi Finance.
however, has been found guilty of having violated the code of
conduct of stock brokers regulations, as he solicited price
sensitive information from the exchanges surveillance
department. Therefore, Sebi has recommended that Rathi be banned
from partaking any trading activity for a period of two years.
all his three firms have remained suspended from doing any
business for a period of nine months beginning 12 March 2001.
Sources indicated that Rathi is likely to appeal against the
also cleared another firm, Navratan Capital and Securities Pvt
Ltd, of having indulged in any kind of
undesirable activity. The firm is said to be owned by Pradeep
Gupta, son-in-law of Rathi, and is perceived to have no business
connections whatsoever with Rathi and/or his companies.