Securities & Exchange Board of India (Sebi), on Tuesday, banned Indiabulls Securities and 14 other brokers from trading in Future & Options (F&O) Contracts on the National Stock Exchange (NSE).
Sebi whole time member G Anantharaman, in a statement issued here, passed an order dated June 18, 2007 in the matter dealing Future & Options  segment on the NSE directing that Indiabulls Securities Ltd and 14 other brokers will cease and desist from indulging in future & options contracts in violation of Sebi  (Stock brokers and sub brokers) Rules and regulations till further orders.
The other 14 brokers are Kumar Share Brokers Ltd., CPR Capital Services Ltd., SMC Global Securities Ltd., Khandwala Int. Fin. Ser P. Ltd, Shilpa Stock Brokers P. Ltd., Angel Capital & Debt Market Ltd, Vibrant Securities Pvt. Ltd., Systematix Shares & Stk (India) Ltd, Steel City Securities Ltd, Ashika Stock Broking Limited, Prashant Jayantilal Patel, PSJ Securities P ltd., Pratibhuti Vinihit Ltd. and Manu Stock Broking (P) Ltd.
Similar violations
That apart, the Sebi order also enforces ban on 10 entities from a similar violation in the dealing of F&O contracts on the NSE.   They are Rakhi Trading P. Ltd, Kasam Holding P. Ltd, Tungarli Tradeplace P. Ltd, Manu Vyapar P. Ltd, Raj Corporation Ltd., TLB Securities Ltd, Amar Mukeshbhai Shah, Shah Chirag Kirtikumar, Amit Business Ltd and Suresh Bharat.
Preliminary examination of the transactions in the Future & Options  segment in the National Stock Exchange for the period January to March 2007 brought out that the brokers and clients at the National Stock Exchange were buying and selling almost equal quantities of contracts within the day and such buy/sell was synchronized in nature.
 In most of the cases, the same quantity and in few cases substantially the same quantity of the original trade was closed out /reversed during the day at a price which was significantly above or below the price at which the first/original transaction was executed, without significant variations in the traded price of the underlying.
Non genuine trade
The entities /brokers have indulged in non genuine trade transactions to create false and misleading appearance of trading and for booking profit/losses on such transactions, the order saud.
The findings of the preliminary examination brought out prima facie violation of Sebi (Prohibition of Fraudulent and Unfair Trade practices relating to securities market) Regulations by the client entities and of the Sebi (Stock Brokers and Sub brokers) Rules and Regulations, 1992 by brokers. According to the Sebi statement, the findings brought out the need for immediate and appropriate action at this juncture to check such abuses in future and accordingly an ad-interim order has been passed to ensure orderly development of the options market and the directions therein are accordingly based.