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Sebi extends Home Trade ban

BS Markets Bureau

The Securities and Exchange Board of India has extended the ban on Home Trade, a broking firm allegedly involved in the government securities scam, from dealing in securities for one more month up to June 10.

The regulator had debarred the firm on April 29. Home Trade was granted a post-decisional hearing on May 3, which was not attended by any of its representatives nor did they respond.

This lead the market regulator to extend the ban up to June 10. Sebi has decided to grant another post-decisional hearing to Home Trade on May 13, the regulator said in a release.

The regulator, in its order last month, had said: "In the facts and circumstances of the case, Home Trade does not appear to be a fit and proper person to continue as a stock broker."

Sebi had said the Reserve Bank of India brought to its notice that the Nagpur District Central Cooperative Bank had violated the apex bank's instructions and entered into certain G-Sec transactions with the firm. And these transactions "appeared to be fraudulent in nature".

"The conduct of the broker, as evident from RBI's correspondence and other supporting documents, appears to Sebi to be in violation of the code of conduct for brokers under Regulation 7 of Sebi (brokers & sub brokers) regulations, 1992," the order had stated.

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