Government advises states to act against illegal share trading

The Government today said it has advised States and Union Territories to take urgent steps to tackle illegal trading of shares.The Securities and Exchange Board of India ( Sebi ) has received complaints against some entities alleging illegal trading of shares in various parts of the country, Minister of State for Finance Namo Narain Meena informed the Rajya Sabha."... the Government of India and Sebi had also written to all the State Governments and Union Territories advising them to take urgent steps to contain illegal trading. Sebi on its part has initiated training programmes and guidance to State Police Departments to deal with instances of illegal trading," Meena said in a written reply.This was done to impress upon the state governments to take appropriate and timely action on the issue, he added.Meena noted that Sebi, in 2006, had made it mandatory for stock brokers to report off-market transactions to the stock exchange.According to the Minister, Sebi has taken enforcement action against a few intermediaries registered with it, including passing restraint orders and quasi-judicial proceedings.