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April 30, 2002 | 2030 IST
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Sebi bars Home Trade from trading till May 10

The Rs 1.5 billion government securities scam at the Nagpur-based co-operative bank took a new turn on Tuesday with Securities and Exchange Board of India debarring broking firm Home Trade Ltd from dealing in securities till May 10.

"In the facts and circumstance of the case, Home Trade doesn't appear to be a fit and proper person to continue as a stock broker," Sebi said in a statement in Mumbai.

Sebi said this step was to ensure that no further harm is caused to the market or the investors are not adversely affected and their safety and integrity remained unimpaired.

Home Trade is a registered broker with Sebi and the market regulator said it would hold a post decisional hearing for the accused company on May 3.

Sebi said the Reserve Bank of India had brought to its notice that Nagpur District Central Co-op Bank Ltd had violated the apex bank's instructions and entered into "certain transactions of government securities with Home Trade Ltd."

According to Reserve Bank of India, these investment transactions of the bank put through Home Trade "appeared to be fraudulent in nature."

"The conduct of the broker as evident from RBI's correspondence and other supporting documents appears to Sebi, to be in violation of the code of conduct for brokers under Regulation 7 of Sebi (Brokers & Sub Brokers) Regulations, 1992," the statement added.

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