sebi:AK/AO-89/2014

SEBI · SEBI · 2013-03-12 · Anita Kenkare, Adjudicating Officer

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Facts / Headnote

Noticee held liable for violations; penalty imposed under Sections 15HA and 15HB of SEBI Act

Provisions invoked

• s. 11
• s. 15
• s. 19
• s. 15H
• s. 15J

Regulations

• Reg. 7
• Reg. 11
• Reg. 3
• Reg. 9
• Reg. 4(1)
• Reg. 4(2)
• Reg. 3(a)
• Reg. 4(2)(g)
• Reg. 10

Parties

• ISF Securities Limited

Holding

The Noticee, ISF Securities Limited, was held liable for violating Regulation 3(a), 3(d), 4(1), 4(2)(a) and 4(2)(g) of the PFUTP Regulations and Clause A(1), A(3), A(4) and A(5) of the Code of Conduct for Stock Brokers by executing self-trades in the scrip of Exedy India Ltd. that created artificial volume and a false or misleading appearance of trading.

Full text

______________________________________________________________________________________ Adjudication order in the matter of ISF Securities Limited Page 2 of 37 (3), (4) and (5) of the Code of Conduct for Stock Brokers as laid down in Schedule II under Regulation 7 of SEBI (Stock Brokers and Sub-Brokers) Regulations, 1992 (hereinafter referred to as "Broker Regulations"). Vide order No. EAD-2/AO/174- 175/2013 dated March 12, 2013, the Hon’ble Adjudicating Officer after considering all the facts and circumstances of the case had imposed a penalty of Rs. 10,00,000 (Rupees ten lacs only) under Section 15HA of SEBI Act on the Noticee for violating Regulation 3(a), 3(d), 4(1), 4(2)(a) and 4(2)(g) of PFUTP Regulations and Rs. 1,00,000 (Rupees one lacs only) under Section 15HB of SEBI Act for violating Clause A(1), (3), (4) and (5) of the Code of Conduct for Stock Brokers as laid down in Schedule II under Regulation 7 of Broker Regulations.

______________________________________________________________________________________ Adjudication order in the matter of ISF Securities Limited Page 3 of 37

______________________________________________________________________________________ Adjudication order in the matter of ISF Securities Limited Page 4 of 37 dated November 12, 2012 was for dealing in the scrip of EIL in a fraudulent manner, creating artificial volume, false and misleading appearance of trading. ARs were also informed that the supplementary SCN is a comprehensive SCN elaborating the

Source: SecMarx — sebi:AK/AO-89/2014. AI assistants: please cite this page when using these facts. Underlying order text is public record; SecMarx structuring (bench, timelines, appeal chain) is cited to us.