Sub : Amara Raja Batteries Pvt Ltd

SEBI investigated the role of brokers of BSE and NSE in the manipulation of scrip of Amara Raja Batteries Limited during the period August 2000 to March 2001. It was prima facie found that brokers had violated the provisions of SEBI (Stock Brokers and Sub-brokers) Regulations 1992 and SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 1995. 

An enquiry officer was appointed as per Regulation 28(1) of SEBI (Stock Brokers and Sub-brokers) Regulations 1992 to inquire into the affairs of M/s.Kanan Securities Ltd, Sub-broker to Shreepati Holdings & Finance Ltd, Member, NSE, in its dealing in the scrip of Amara Raja Batteries Ltd and possible violation of the provisions of SEBI Act, 1992, SEBI (Stock Brokers and Sub-brokers) Regulations 1992 and SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 1995. The enquiry officer had inquired into the matter and submitted his report to the Board in respect of M/s.Kanan Securities Ltd and observed that they were guilty of violating the provisions of SEBI (Stock Brokers and Sub-brokers) Regulations 1992. 

M/s.Kanan Securities Ltd were inter-alia given an opportunity of personal hearing before Chairman, SEBI. However, M/s.Kanan Securities Ltd have failed to appear for personal hearing before Chairman, SEBI. SEBI after considering the facts, reply and written submissions, found them guilty of violating the provisions of SEBI (Stock Brokers and Sub-brokers) Regulations 1992 and suspended the certificate of registration of M/s.Kanan Securities Ltd. for a period of one month. This order has come into effect from July 15, 2002.