The SEBI noticed a spurt in the volume of trading of the scrip of ABC Ltd., both at National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) during May, 2013 to July, 2013. Though the scrip was not very liquid, it w
CS Executive · Capital Markets & Securities Laws · PYQS · June 2014
The SEBI noticed a spurt in the volume of trading of the scrip of ABC Ltd., both at National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) during May, 2013 to July, 2013. Though the scrip was not very liquid, it was observed that during the said period, the price of scrip ranged between ₹25 to ₹125. It was found on investigation that a stock broker of BSE himself got registered as a client with a NSE broker and placed orders in large quantities in the scrip of ABC Ltd. during May, 2013 to July, 2013. On the basis of these facts, examine whether the SEBI can initiate any action against the said BSE broker and if so, under what rules and regulations?
Topics: Market Manipulation and Insider Trading