Mumbai: The Securities Appellate Tribunal (SAT), which hears appeals against orders passed by markets regulator Securities and Exchange Board of India (Sebi), on Tuesday extended a stay obtained by Shankar Sharma, vice-chairman and joint managing director of First Global Stock Broking Ltd, that allows him to trade in equities until 30 November.
Sharma had successfully challenged a Sebi order in March. He had been barred from trading for a year, effective 13 February, for allegedly violating regulations in 2001 by using fictitious trading accounts. “We had asked for time and SAT has extended the stay till 30 November,” Sharma’s legal counsel Somasekhar Sundaresan told Mint. “We will file an appeal before the Supreme Court.”
Last week, SAT had upheld Sebi’s February order that barred Sharma from trading. Sebi had said in its order that First Global and a Sebi-registered broker, Vrudhi Confinvest India Pvt. Ltd, had made large transactions in 10 securities.
Sebi had also alleged that Sharma had, together with Vrudhi Confinvest, carried out a number of synchronized trades in his proprietary account in various securities. Synchronized trading is a form of stock manipulation, which occurs when someone buys and sells the same stock several times around to raise trading volumes.