SAT stays SEBI order against Shankar Sharma

The Securities and Appellate Tribunal (SAT) on Monday stayed the SEBI order on First Global's Shankar Sharma till final disposal of appeal. SEBI had earlier restrained Sharma from trading in stocks for a period of one year. The SEBI order was to come into effect on March 17.When contacted, the SAT registrar told ET "SAT has stayed SEBI order on Shankar Sharma. The order was passed by Justice M K Sodhi".On February 13, the Securities and Exchange Board of India (SEBI) has banned Shankar Sharma, vice-chairman and joint managing director, First Global, from dealing in securities for one year for his alleged role in trying to manipulate prices of 10 stocks, including Zee Telefilms, Wipro, Satyam, MTNL, SBI and Infosys Technologies in 2001.According to the market regulator, its investigations revealed Mr Sharma as having indulged in fictitious trading by taking opposite positions at First Global Stock Broking and Bang Equity, a stock broking firm owned by the late Nirmal Bang, and by giving false orders for purchase and sale of securities, the execution of which involved no change in ownership.The SEBI order further said that the trading pattern through Bang Equity and First Global was of a highly irregular nature and established that Mr Sharma had indulged in a concerted attempt to interfere with the smooth functioning of the market and had acted in a manner which erodes the confidence of investors and adversely affects the integrity and the healthy growth of the market.The SEBI order had also said that the show-cause notice issued to Devina Mehra, wife of Sharma and a director of First Global, has been ���disposed of, without any direction".