New Delhi, Apr 28 (PTI) Markets regulator Sebi has disposed of allegations of fraudulent trading against Indiabulls Securities over a case related to irregularity in the trading in futures and options segment at the leading exchange NSE.

In an order dated April 27, Sebi said there was "nothing on record" to show that Indiabulls Securities -- now known as Indiabulls Ventures -- had connived or colluded with the 11 clients in executing the 36 non-genuine transactions in the options segment.

The regulator said the allegation levelled against Indiabulls Securities that it has violated the provisions of PFUTP (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations and Stock Broker Regulations is "unsustainable".

Accordingly, the Securities and Exchange Board of India (Sebi) disposed of the adjudication proceedings initiated against Indiabulls Securities through the show cause notice dated March 31, 2008.

The regulator had conducted an investigation into the dealings in the futures and options segment of the NSE during the period from February 1 to March 31, 2005.

The probe conducted by Sebi had alleged that certain fraudulent dealings were committed by Indiabulls Securities in connivance with its clients, resulting into the misuse of the options segment at NSE during the investigation period.

It was also alleged that Indiabulls Securities had failed to exercise skill and diligence in its conduct as a stock broker while executing the transactions in the options segment on behalf of its clients.

Alleging violation of PFUTP and Stock Broker Regulations, Sebi had initiated adjudication proceedings against Indiabulls Securities.

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