The Hindu Business Line : SEBI imposes `major penalty' on Jhaveri Securities

SEBI has imposed a `major penalty' on Jhaveri Securities Pvt Ltd (JSPL) and has restrained the brokerage from opening fresh demat accounts for a period of nine months.

This follows the investigation on fictitious demat accounts conducted by SEBI.

The market regulator had conducted an investigation into the buying, selling and dealing in shares through Initial Public Offerings (IPO) of companies during the period between 2003 and 2005.

The investigation found that many demat accounts in fictitious and benami names were opened by certain operators to corner shares of companies coming out with fresh issues.

JSPL, a SEBI-registered depository participant, had received 27,667 shares of Suzlon Energy Ltd from 1,009 demat accounts.

It was also discovered that out of a total of 37,240 similar accounts, as many as 598 were held by JSPL, the order said.

During the course of verification of 20 or more demat account holders sharing common addresses, it was noticed that 686 demat account holders of JSPL were sharing a few common addresses.

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