Consent order passed by SEBI in matter of M/s Galaxy Broking Ltd

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Mumbai, Aug 12 (UNI) A panel consisting of Securities and Exchange Board of India (SEBI) Chairman C B Bhave and Whole Time Member Dr T C Nair has passed a consent order on the application submitted by the clients of M/s Galaxy Broking Limited.

In the matter of inspection of books of accounts and records of galaxy booking limited, SEBI had passed an ad Interim ex parte order on January 24, 2006 against Galaxy Broking Limited and others and later confirmed the same by an order on December 21, 2006, with certain modifications with respect to the clients of Galaxy, a sebi release said.

All the seven clients and Galaxy were group entities/family members. Subsequently SEBI had passed a consent order dated January 7, 2008 in the matter of inspection of Galaxy and had settled the entire matter on payment of Rs one lakh. One of the consent terms proposed by Galaxy was to lift the ban on clients viz Manish K Ashar, Pooja A Gandhi, Sudha A Gandhi, M/S Amrut Securities Limited, Amrutlal J Gandhi, Anil A Gandhi and Preeti A Gandhi.

However, the consent order was passed with respect to Galaxy alone, as the application for consent was filed only by Galaxy and not by the applicants. As per the order on January 24, 2006, which was later confirmed by the order on December 21, 2006.

The charges made against the applicants included indulging in pump priming the trading volumes in the penny stocks to create an artificial market and trading in the penny stocks through a group of relatives, interconnected clients and others, thereby manipulating the scrips, the release added.

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