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Sebi action against more brokers this week

Janaki Krishnan

The Securities and Exchange Board of India is expected to take action against some more erring brokers named in its interim report on the market crash, in the later part of the coming week.

Sources said that based on further evidence against the brokers concerned action will be taken against R K Damani of Brightstar, Shailesh & Associates of Daulat Capital, BLB Shares & Stock Brokers, all of whom have been found to have played significant roles in the equities market crash on March 2.

"We are collecting more evidence against them after which the orders will be passed," sources said, adding that some action is expected towards the end of the week.

The first two days of the week will be taken up by the board meeting in Delhi on Monday and the Anand Rathi hearing on Tuesday - while Sebi is also geared up to expect appeals being filed against it by the brokerages on which it has passed orders, barring them from trading - this also includes the three companies BPL, Videocon, Sterlite and their promoters, which were found to be involved in price manipulation in the payments crisis in June 1998.

Sources in the know said that Sebi is proceeding cautiously in the matter of taking action against the erring brokers. "We have to be very careful and at every step we make sure that there is sufficient evidence to justify our action," they added.

In fact collection of evidence is an ongoing process in the exchange as these will be necessary when Sebi fixes the date for hearings by the barred brokers.

The interim report submitted by Sebi on March 15 to the finance minister is an 89-page document, with a number of annexures, which mainly details the transactions of the entities covered in the report.

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