Sebi bars Pinac Stock Brokers from securities market

Market watchdog Sebi today said it has barred Pinac Stock Brokers from trading in securities market with regard to alleged irregularities in Tijaria Polypipes' initial public offering (IPO).While barring the brokerage for a period of five years, the regulator said Pinac Stock Brokers has already undergone the prohibition for one year and five months due to Sebi's interim order passed in December 2011.Accordingly, Sebi today said that prohibition "shall be reduced while computing the period of restrain being imposed vide this order." The IPO of Tijaria Polypipes was open from September 27-29, 2011.The Securities and Exchange Board of India (Sebi) had initiated a probe into the fall in price of Tijaria Polypipes' shares on the first day of its listing, October 14, 2011.Preliminary investigations revealed that Tijaria Polypipes had diverted substantial part of the IPO proceeds, "through layered transactions", to certain entities or individuals who had allegedly provided an exit to the retail allottees/Qualified Institutional Buyers (QIBs).Sebi said that Pinac Stock Brokers had entered into a structured reversal trades with Jivraj Zala, Swift Tie Up Private Limited Consequently, Sebi has restrained "the noticee (Pinac Stock Brokers) from buying, selling or otherwise dealing in securities, directly or indirectly, for a period of five years."This order shall come into force with immediate effect", it added.