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Mumbai June 19 SEBI has passed an order cautioning 15 brokers, including Indiabulls Securities among others, to `cease and desist' from undertaking Futures and Options contracts in violation of SEBI guidelines while trading on the National Stock Exchange.

The regulator passed the order after examining trade transactions at NSE between January and March 2007, and came to the conclusion that the sample transactions tended to create a false and misleading appearance of trading in the market.

It gave the example of Kumar Share Brokers Ltd, whose client, one Poonam Narendra Chaudhary bought a `put' contract (the right to sell) 4,500 shares of UTI Bank at a price of Rs 490 paying an option premium of Rs 15 per share from one Ruchi Mehrotra. After exactly 23 seconds the same Ruchi Mehrothra decides to buy a similar `put' option and coincidentally from the same Poonam Chaudhary at the same price, but this time for an option premium of a mere Rs 3 per share. The net effect of the two transaction resulted in a gain of Rs 54,000 for one and a loss of an identical sum for the other.

SEBI has cautioned them against indulging in such transactions till further orders.

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