MUMBAI: SEBI has passed consent orders against two brokerages for creating "false and misleading appearance of trading in the derivatives market". In an order dated December 29, SEBI has directed Ashika Stock Broking and Raj Corporation to pay Rs 5 lakh and Rs 7.50 lakh respectively towards settlement charges.
According to the market regulator, the investigations, prima facie revealed that Raj Corporation and Ashika Stock Broking bought and sold equal quantities of option contracts intra day in synchronization with others, and thereby created false and misleading appearance of trading in the derivatives market. Sebi conducted investigations into the alleged irregularities in dealings in the F&O segment of NSE for the period January-March 2007.
Earlier, SEBI had issued an ad-interim ex parte order dated June 18, 2007 directing the two brokerages to "cease and desist from indulging in futures and options contracts in the manner found irregular". The adjudicating officer issued a show cause notice dated October 5, 2007 to the entities.
