Case: 1.SEBI, 2.In Re: Ranbaxy Laboratories Ltd. Vs 1.Active Finstock Pvt Ltd.. Securities and Exchange Board of India

JudgesV.K. Chopra, Member
IssueCompany Law
Judgement DateMarch 16, 2007
CourtSecurities and Exchange Board of India


V.K. Chopra, Member

  1. Securities and Exchange Board of India (hereinafter referred to in short as "SEBI") conducted investigation into the affairs relating to buying, selling and dealing in the shares of Ranbaxy Laboratories Ltd.

  2. SEBI, after considering the investigation report, appointed an Enquiry Officer vide Order dated November 29, 2002 to enquire into the violations allegedly committed by the broker M/s Active Finstock Pvt Ltd (hereinafter referred to in short as "the Broker") under the provisions of Regulation 4(a), (b) (c) & (d) of the SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 1995, Regulation 7 read with schedule II, Clause A(3) and (4) of SEBI (Stock Brokers and Sub-Brokers) Regulations, 1992 and Rules, Regulations and Bye-laws of Stock Exchange.

  3. The Enquiry Officer submitted a report dated January 07, 2004. I have perused the said report and the other material documents relied upon by him to arrive at a conclusion in the proceedings against the Broker in the matter of Ranbaxy Laboratories Ltd. It is observed from the said report that the Enquiry Officer has observed/recommended as under:

    It is difficult to draw a conclusion that the said two transactions by the member broker had artificially raised the price of the scrip particularly because these transactions were done on behalf of clients and got matched against sell orders...

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