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Sebi puts Indiabulls, India Infoline and Fortis under the scanner
Mumbai: The Securities and Exchange Board of India (Sebi) is scrutinizing the records of three securities firms, Indiabulls Financial Services, India Infoline and Fortis Securities, to see whether there was any violation of the KYC (Know your client) norms.

Sebi has adopted a tough stance on several broking firms following a spurt in prices of a large number of penny stocks in the recent past.

In the past month Sebi has passed orders against seven penny-stocks banning the promoters, directors and brokers who contributed to significant proportion of the turnover in those stocks to deal in the shares of respective companies.

Sebi sources said Indiabulls, India Infoline and Fortis had contributed significantly to the turnover in some of the penny stocks, which they suspected had been manipulated.

Indiabulls executive director Gagan Banga said Sebi's move was part of a routine inspection. Indiabulls had clarified yesterday that for the first six months of the current year, the trading volume of Indiabulls Securities on behalf of its clients in the Z, S and trade-to-trade category stocks was 1.80 per cent of its total trading volumes in capital markets.

Fortis Securities denied that there was any inspection by Sebi.

Sources at IndiaInfoline said this was part of a routine inspection and "in the normal course of business."
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