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April 16, 2001
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Money > Business Headlines > Report April 16, 2001 |
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Global Software, DSQ trades on CSE 'dubious'Aniek Paul Following the reversal of a number of trades in two stocks, DSQ Industries and Global Software, on grounds of default, it has come to light that these two stocks were being rigged at the Calcutta Stock Exchange over a long period of time. CSE executive director Tapas Datta admitted that trades in these two stocks over a length of time appear 'dubious', but were overlooked by the exchange's surveillance. The Securities and Exchange Board of India chairman D R Mehta said, the market regulator would examine the issue on submission of CSE's report, final touches to which are being given. CSE would file the report this week, sources said. Harish Chandra Biyani and his firm Biyani Securities defaulted last month in meeting payment obligation of Rs 480 million arising out of trades in these two stocks, forcing CSE to expunge the trades. The exchange, however is unwilling to go back to the trades that went through without any hiccups. CSE officials felt that any move to book the operators driving the counters could open a can of worms, jeopardising the bourse's efforts to regain investor confidence. "Besides, since the pay-out for these trades has already been made, it is now difficult to penalise the members involved in rigging the stocks," a CSE official said. A broker-director of the exchange who resigned recently pointed out a large number of 'collusive' trades in these two stocks in February. All these trades were in big volumes, and between a set of members. Speaking on condition of anonymity, he said, "The stocks were being driven by Calcutta-based operators through circular trading, with the intention of luring buying by retail investors. Since the prices of these stocks far exceeded their intrinsic worth, any retail investor buying them would have eventually lost money." However, trading details indicate that retail investors did not take part in the attempted rally in any major way. The expunged trades in DSQ Industries involved the three key defaulting groups. In all these trades, Biyani or his firm was the buyer, while one other defaulter was the seller. These trades had taken place through the custodian route, with UTI-promoted Stock Holding Corporation of India Ltd confirming them. Powered by ALSO READ:
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