Market regulator Sebi has disposed of matters against Anand Rathi Share & Stock Brokers and Arcadia Share & Stock Brokers for alleged violation of broker norms in two different cases, saying the charges could not be established.
Sebi, through two separate orders dated November 21, said the violation of relevant provisions of stock brokers norms have been 'difficult to establish' against Anand Rathi Share and Arcadia Share in Winsome Textile Industries and Aarey Drugs and Pharmaceuticals respectively. Accordingly, the adjudication proceedings are disposed of, it added.
The matters relate to cases way back in 2009. In its show cause notice, the Securities and Exchange Board of India (Sebi) alleged that Anand Rathi Share had executed synchronised trades in Winsome shares on behalf of its clients.
Besides, it also alleged that Arcadia Share had executed self trades in Aarey scrips on behalf of its clients wherein it acted as both stock broker and counter party stock broker.
In the matter of Anand Rathi Share case, the Securities and Exchange Board of India (Sebi) observed that Anand Rathi Share on behalf of its client had executed four synchronised trades on three days for 30,000 shares in the scrip.
"...total buy/sell percentage by the clients during the investigation period (January-August, 2009)is mere 0.26 per cent of total traded quantity which cannot influence the share price over 8 months ," Sebi said.
In respect of Arcadia Share, Sebi said: "Value and volume (percentage) of alleged self trade is very small in comparison to the total volume in the market which cannot affect the market equilibrium."
Consequently, Sebi said that it is difficult to conclude that Anand Rathi Share and Arcadia Share have violated relevant clause of code of conduct for stock brokers as specified under Sebi regulation.