SEBI, the market regulator, has cancelled the registration of Alliance Intermediaries and Network for violating stock broker norm, reports PTI.

SEBI found Alliance Intermediaries and Network issuing bogus and fake contract notes against receipt of cash to show fictitious transactions as genuine ones and enable its clients to book fictitious speculative gains and short/long term gains/losses for tax purposes.

The market regulator further said that the activities of the broker were inherently fraudulent and were aimed at aiding and abetting tax frauds.

By indulging in such activities as a broker, Alliance Intermediaries and Network failed to exercise due skill, care and diligence, while also failed to maintain high standard of integrity, promptitude and fairness in conduct of its business and indulged on fraudulent and deceptive schemes with a view to make personal gains, according to SEBI order on Wednesday.

Through such activities, the entity has violated the code of conduct specified in stock broker norms.

Resultantly, SEBI has cancelled the certificate of registration of Alliance Intermediaries and Network as a stock broker.

Alliance Intermediaries and Network was registered with SEBI as a member of Inter-Connected Stock Exchange of India Limited.
In a separate order, the regulator has imposed a penalty of Rs.2 lakh each on Alok Jain Tijaria, Vineet Jain Tijaria, Vikas Jain Tijaria and Praveen Jain Tijaria for concealing 'material information' in the IPO prospectus of Tijaria Polypipes Ltd.

These persons failed to disclose material information in the company's prospectus regarding the board resolution to raise funds through inter-corporate deposits (ICDs), SEBI said.