In connection with a probe into a sharp rise in price and trading volume of GHCL shares between November 6, 2006 and March 31, 2007, Sebi conducted a probe in the role of brokers and their clients who traded in the stock. “It was observed during investigation that certain entities had indulged in synchronisation of deals/reveral trading/fictitious trading in the shares of GHCL in a manner that led to creation of artificial volume and impacted the price of the scrip,” Sebi order said.
India Infoline was charged with executing sybchronised transactions in GHCL shares for Jalco Financial Services (JFSPL) and Wilful Finance and Investment (WFIPL) and violating code of conduct of brokers. “JFSPL & WFIPL entered into several synchronised trades, out of which 36 were transacted through the noticee. The notice through these 36 synchronised transactions created a volume of 8,67,000 shares,” it was alleged.
The probe, however, found India Infoline “had merely acted as an agent for its clients and carried out the orders on the screen based trading mechanism of the exchange.”