sebi:BM/AO-121/2010
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Facts / Headnote
Penalty imposed on the Noticee for violations of PFUTP Regulations and Code of Conduct for Stock Brokers
Provisions invoked
- s. 15
- s. 15H
- s. 15J
Regulations
- Reg. 7
- Reg. 3
- Reg. 4(2)
- Reg. 200
- Reg. 3(a)
- Reg. 4(2)(b)
Parties
- Shriam Financial Pvt. Ltd.
Holding
The Noticee, Shriam Financial Pvt. Ltd., violated regulations 3(a), 3(b), 4(1), 4(2)(a), (b), (e) and (g) of PFUTP Regulation 2003 and clauses A(1) and (3) of the Code of Conduct for Stock Brokers, and a total penalty of Rs. 3,00,000 was imposed (Rs. 2,00,000 under section 15HA and Rs. 1,00,000 under section 15HB of SEBI Act).
Full text
Page 2 of 17 2. It was observed that the price of the scrip during the investigation period increased from ` 6.82 to ` 57.20. Prior to investigation period i.e. May 9, 2008 no trading was observed in the scrip of SNCF. It was observed that a member of BSE, Shriam Financial Pvt. Ltd. (hereinafter referred to as “Noticee”) while dealing for Chairman of SNCF viz. Mr. Anoop Aggarwal and other Delhi based clients was the only seller member on all trading days in the scrip whereon on all these days the Noticee/clients failed to meet the pay-in- obligations. On analyzing the trading data it was observed that the Noticee while dealing for its clients in the scrip by placed multiple large quantity buy orders mainly at upper circuit rate. Also, these orders were followed by a sell
Page 3 of 17 APPOINTMENT OF ADJUDICATING OFFICER 3. The undersigned was appointed as Adjudicating Officer vide order dated March 12, 2010 under section 15 I of SEBI Act read with rule 3 of SEBI (Procedure for Holding Inquiry and Imposing Penalties by Adjudicating Officer) Rules, 1995 (hereinafter referred to as ‘Rules’) to inquire into and adjudge the alleged violations of PFUTP and Brokers Regulation committed by the Noticee. SHOW CAUSE NOTICE, HEARING AND REPLY
Page 4 of 17 We wish to humbly submit that the alleged trade practice in the SNCF scrip using the Company’s terminal (BSE) at the Delhi Office, did not come to our notice for some time understandably owing to the auction and trading amounts being very small. However, we wish to state that as soon as the aforesaid came to our knowledge, we took immediate steps to stop such trading on the terminal.
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Source: SecMarx — sebi:BM/AO-121/2010. 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.