Mumbai: Market regulator SEBI has disposed of a case against two brothers of their alleged involvement in fraudulent dealings in UTI Sunder ETF (Exchange Traded Fund).
The Securities and Exchange Board of India (SEBI) has disposed of the adjudication proceedings against -- Saurabh C Shah and his brother Mital C Shah -- saying that charges against them were "not established".
In its show cause notice (SCN), SEBI had alleged the brothers of artificially inflating the price of the UTI Sunder ETF and also giving a false and misleading appearance of trading in the fund during the period August 1 to November 4, 2011.
The regulator in an order dated April 3 has observed that Saurabh C Shah had executed only one reverse trade within a time gap of four minutes along with his brother Mital C Shah on one day in the ETF during the entire investigation period.
SEBI has noted that "one reverse trade executed by the noticees (Shah brothers) will not amount to artificially inflating the price of the ETF and will also not give a false and misleading appearance of trading in the ETF as alleged in the SCN".
SEBI had observed that UTI Sunder ETF opened at the BSE at Rs 660 on August 3, 2011 and closed at Rs 2,054 on November 4, 2011, following which the regulator had probed the price movement in the ETF.