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SEBI moves Bombay HC against brokers in price rigging case

A division bench of the Bombay High Court comprising Justices A Agarwal and S S Parkar today adjourned proceedings to November 5, in the case involving three Bombay Stock Exchange brokers, who were yesterday granted an 'ex parte' stay order, when they had moved the court challenging the order of the Securities and Exchange Board of India debarring them from operations.

The court admitted the SEBI's affidavit against the stay order granted to the three brokers including BSE vice-president Rajendra Bhantia's firm Harvest Deal Securities. The two other stockbrokers are Ramrakh R Bohra and Mahico Private Limited.

The SEBI had banned 18 stockbrokers including these three till enquiry proceedings into price manipulation of Videocon International, BPL and Sterlite Industries scrips were completed.

The SEBI had said that it had gathered ''enough prima-facie evidence'' to support allegations that the 18 brokers acted in concert with erstwhile big bull Harshad Mehta to rig prices of these scrips.

Meanwhile, BSE president J C Parekh said that Bhantia can continue as the exchange's vice-president since the Bombay high court has granted a stay on the order of the Securities and Exchange Board of India. Parekh added that the governing board of the BSE will not place the issue of Bhantia's continuance on the agenda.

''The order of the SEBI debarring Bhantia from stockmarket operations has been stayed by the court. Therefore, the matter cannot be considered by the court,'' he said.

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