The Securities Appellate Tribunal (SAT) has asked SEBI to note that synchronised trading is unfair only if it leads to price manipulation.
SAT said that synchronised trades per se were not illegal. They turn illegal only if used to manipulate scrip prices.
Stating this, SAT set aside SEBI’s order against Subhkam Securities for manipulating prices in the Mascon Global scrip.
SEBI’s investigation revealed that Mascon’s stock prices hit a high of Rs 505.6 and a low of Rs 84 between December 2000 and March 2001-the period in question.
Different entities
SAT said that though the trades were synchronised, the buyers and sellers in all the four transactions in question were different.
The fact that trades were carried out only for four days during investigation period and were spread over three months with substantial time difference between trades was ignored by SEBI, said SAT.
Further, no transaction was reversed and delivery of the scrip happened in each case resulting in transfer of beneficial ownership, observed SAT.
No allegation
In addition, there was no allegation that the price of the scrip was manipulated, said SAT.
Finally, SAT also pointed out that it had taken SEBI 12 years (June 2001 to March 2012) to complete an investigation against an entity facing charges of market manipulation.
Inordinate delay in conducting inquiries and punishing the delinquent demoralise market players who are ultimately not found guilty, it said.
SAT said that market players have the right that proceedings against them are conducted expeditiously so that they are not made to undergo mental agony without any fault on their part, said SAT.
raghavendrarao.k
@thehindu.co.in