The Securities Appellate Tribunal (SAT) rules against Shankar Sharma

The Securities Appellate Tribunal (SAT) has disallowed First Global Managing Director Shankar Sharma’s appeal in a 2001 case relating to alleged violation of norms and indulging in fictitious trading. A background: On February 14, 2009, the Securities and Exchange Board of India (SEBI) had barred Sharma from trading in equities for a year for indulging in synchronised trades (in which buying and selling is done at the same time) to rig share prices of 10 companies in 2001. Following the order, Sharma appealed to the SAT, which in March stayed the debarment order. Now, the SAT says it is satisfied that Sharma executed fictitious trade. “Sharma took opposite positions, which is not permissible. The trades were also manipulative in as much as the buy/sell orders were placed at almost the same time,” it said. “No fault can be found with the impugned order of the SEBI.” The SAT said it did not agree with Sharma’s defence that the SEBI was ‘on a witch-hunt’. "We will review the order the SAT order and appeal against it in the Supreme Court," Sharma told CNBC-TV18.

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