sebi:AO/BJD/MAS/EAD/107/2018
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Facts / Headnote
Violations not established; adjudication proceedings initiated vide SCN dated November 15, 2016 disposed of without any penalty
Provisions invoked
- s. 15
- s. 15H
Regulations
- Reg. 7
- Reg. 4
- Reg. 3
- Reg. 4(2)
- Reg. 3(a)
Parties
- OPG Securities Pvt. Ltd.
Holding
The Adjudicating Officer held that violation of Regulations 3(a), (b), (c), (d) and 4(1), 4(2)(g) of the PFUTP Regulations by the Noticee as client and violation of Clause A(3), (4) and (5) of the Stock Brokers Code of Conduct as broker were not established, and disposed of the adjudication proceedings without any penalty.
Full text
Page 2 of 15 2. During the course of investigation, it was observed that OPG Securities Pvt. Ltd. (hereinafter referred to as the Noticee), had indulged in irregular trading activities in the scrip of BIL to create artificial volume by way of 'Self- trades’. Self trades are fictitious trades wherein the same client appears as both buyer and seller and therefore do not result in change of beneficial ownership and creates false and misleading appearance of trading in the market. It was therefore alleged that the Noticee by virtue of repeatedly entering into self trades, created artificial volume in the scrip and thus violated Regulation 3 (a), (b),(c),(d) and 4 (1), 4(2) (g) of SEBI PFUTP Regulations, 2003, which is liable for penalty under Section 15HA of SEBI Act, 1992. Further, the Noticee being a SEBI registered intermediary, executed the above trades, by acting as broker on both buy and sell side for executing 'Self-trades' in its own trading account in violation of the provisions of Clause A (3), (4) & (5) of Code of Conduct for stock brokers as specified under Schedule II read with Regulation 7 of SEBI (Stock Brokers and Sub- Brokers) Regulations, 1992, which is liable for a penalty under Section 15HB of SEBI Act,
Page 3 of 15 consequent to an inter- departmental transfer and postings, the said proceedings were transferred to the undersigned vide order dated May 16, 2017. SHOW CAUSE NOTICE, REPLY AND PERSONAL HEARING
Page 4 of 15 its own trading account had failed to exercise due skill, care and diligence in its conduct of broking business by violating the provisions of Clause A (3), (4), & (5) of Code of Conduct for stock brokers as specified under Schedule II read with Regulation 7 of SEBI (Stock Brokers and Sub- Brokers) Regulations, 1992. REPLY TO THE SCN
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Source: SecMarx — sebi:AO/BJD/MAS/EAD/107/2018. 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.