sebi:8123

SEBI · SEBI · 2007-02-19 · G. Anantharaman, Whole Time Member

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Facts / Headnote

Major penalty imposed: suspension of certificate of registration for six months, running concurrently with existing suspension dated January 17, 2007.

Provisions invoked

• s. 13

Regulations

• Reg. 7
• Reg. 4
• Reg. 13(4)
• Reg. 5(1)
• Reg. 3
• Reg. 4(a)

Parties

• D.B & Co (Registration no. INB 030067311)

Holding

SEBI held that D.B & Co violated Regulation 4(a) and 4(b) of the FUTP Regulations and clauses A(1), A(2) and A(4) of the Code of Conduct in Schedule II to the Broker Regulations by executing cross deals that artificially raised prices and volumes in the shares of Patriot Trading Company Ltd., and imposed a major penalty of six months' suspension of its registration, running concurrently with its existing suspension.

Full text

Date of Hearing: February 19, 2007 Appearances: Noticee : Shri Debabrata Biswas, Proprietor of the Broker Securities and Exchange Board of India : Shri Jayanta Jash, Dy. General Manager 1.0

Regulations, 2003 (hereinafter referred to as the FUTP Regulations), Securities and Exchange Board of India (Stock Brokers and Sub-Brokers) Regulations, 1992 (hereinafter referred to as the Broker Regulations), Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations,1997, (hereinafter referred to as the ‘Takeover Regulations’) and Securities and Exchange Board of India (Prohibition of Insider Trading ) Regulations, 1992 (hereinafter referred to as the insider Trading Regulations). 1.3 The investigation conducted by SEBI found that certain members of CSE namely, Ballabh Das Daga, Bubna Stock Broking Services Ltd., D.B & Co, Lexus Shares & Stock Brokers Pvt. Ltd. and Prakash Baid Securities Pvt. Ltd. traded substantially in the shares of the company and contributed 87% of the total turnover in the said shares at CSE during the period August 2001 to February 20002. The aforesaid members of CSE are also registered as stock broker with SEBI. The aforementioned D.B & Co is hereinafter referred to as the Broker. 1.4 It was found that the Broker had executed trades for 5,84,000 ( both buy and sale) shares of the company on behalf of its various clients out of the total turnover of 78,68,302 shares at CSE. Investigation revealed that out of the aforesaid trades of the Broker, 5,44,000 shares were transacted by way of cross deal which constituted 93% of the Broker’s trading volume in the shares of the company. It was also found that both the

Date Order Time Trade Time Order No Trade No Member Code Qty Price Buy / Sell Counter Party Code 5- Dec-01 12:52:37 12:52:38 330914190 1348 D0090 10000 27.50 B D0090 5- Dec-01 12:52:37 12:52:38 271137059 1348 D0090 10000 27.50 S D0090 5- Dec-01 12:52:48 12:52:48 330914192 1349 D0090 10000 27.50 B D0090 5- Dec-01 12:52:48 12:52:48 271137060 1349 D0090 10000 27.50 S D0090 5- Dec-01 12:52:57 12:52:58 330914193 1350 D0090 10000 27.50 B D0090 5- Dec-01 12:52:57 12:52:58 271137061 1350 D0090 10000 27.50 S D0090 5- Dec-01 12:53:03 12:53:07 330914194 1351 D0090 10000 27.50 B D0090 5- Dec-01 12:53:07 12:53:07 271137062 1351 D0090 10000 27.50 S D0090 5- Dec-01 12:53:08 12:53:18 330914195 1352 D0090 10000 27.50 B D0090 5- Dec-01 12:53:17 12:53:18 271137064 1352 D0090 10000 27.50 S D0090 5- Dec-01 12:53:15 12:53:22 330914196 1353 D0090 10000 27.50 B D0090 5- Dec-01 12:53:22 12:53:22 271137065 1353 D0090 10000 27.50 S D0090

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