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SEBI bans CSFB from trading for two years

Our Bureau

MUMBAI, June 17

THE Securities and Exchange Board of India today suspended the registration of foreign broking firm Credit Suisse First Boston Securities (CSFB) for two years, effective April 18, 2001, for manipulation of stock prices in early 2001.

The capital markets regulator said CSFB violated SEBI regulations on prohibition of fraudulent and unfair trade practices.

Following excessive volatility in BSE and NSE indices in February 2001, SEBI had undertaken an investigation into transactions by various stockbrokers. On April 18, 2001, CSFB was suspended from undertaking fresh trades till the completion of SEBI investigations.

The decision by the SEBI Chairman, Mr G.N. Bajpai, to ban CSFB for two years has been taken after taking into consideration the SEBI enquiry report and submissions made by CSFB during the hearing.

CSFB said in a statement today it was very disappointed with this outcome. However, it said that CSFB would respect and abide by the ultimate outcome of the Indian regulatory and legal process, as with the regulatory and legal process in all jurisdictions in which it operates globally.

The foreign broking firm said it had strenuously defended its position during the SEBI enquiry. The firm was reviewing the terms of the ruling carefully and shall consider all recourse available to it, it said.

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