Mumbai, Sept. 23: The Securities and Exchange Board of India (Sebi) today announced that it has cancelled the registration of broking outfits affiliated to Shankar Sharma and Devina Mehra.
Sebiís investigations in the wake of volatility in index movements during mid February and early March 2001 encompassed entities controlled and connected by/with Shankar Sharma and Devina Mehra like First Global Stock Broking Pvt. Ltd. (FGSB), Stock Broker, Merchant Banker and Portfolio Manager and Vruddhi Confinvest India Pvt. Ltd. (VCIP).
Through an order dated May 25, 2001, Sebi had directed the brokers not to undertake any fresh business till further orders. Subsequently an enquiry officer was appointed.
The enquiry officer submitted his report on January 9, 2002 and found that First Global Stock Broking Private Ltd and Vruddhi Confinvest artificially depressed prices of select scrips.
The market regulator said the order will come into effect immediately.
However, as per the directions of Bombay High Court this order stands stayed for four weeks from the date of receipt of the copy of this order by them.