sebi:BM/AO-128/2010
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Facts / Headnote
Noticee held to have violated PFUTP Regulations, Broker Regulations Code of Conduct and SEBI Circular and held liable for monetary penalty under Sections 15HA and 15HB of the SEBI Act
Provisions invoked
- s. 15
- s. 15H
- s. 15I
- s. 15J
Regulations
- Reg. 7
- Reg. 3
- Reg. 4(1)
- Reg. 4(2)(a)
- Reg. 4(2)(e)
- Reg. 4(2)(g)
Parties
- Galaxy Broking Limited
Holding
The Adjudicating Officer held that Galaxy Broking Limited violated Regulation 4(1), 4(2)(a), (e) and (g) of the PFUTP Regulations, Regulation 7 read with Clauses A(1) to A(5) of the Code of Conduct for Stock Brokers and SEBI Circular dated August 27, 2003, and is therefore liable for monetary penalty under Sections 15HA and 15HB of the SEBI Act.
Full text
_____________________________________________________________________________________ Galaxy Broking Limited in the matter of Hit Kit Global Solutions Limited Page 2 of 25 %) as on June 30, 2005 and to 6,86,000 shares (1.85%) as on September 30, 2005. EUL was not shown as promoter in the subsequent quarters and its holding reduced to 25000 shares by December 1, 2005. The last of such trades happened in November 2005. It was also observed in the quarter ended January 31, 2005, the first quarter after EUL offloaded substantial shares in the company, the company reported exceptional losses which taken together had neutralized the accumulated profits and the year’s financial results became ordinary.
_____________________________________________________________________________________ Galaxy Broking Limited in the matter of Hit Kit Global Solutions Limited Page 3 of 25
_____________________________________________________________________________________ Galaxy Broking Limited in the matter of Hit Kit Global Solutions Limited Page 4 of 25 to as ‘AR’), appeared on behalf of the Noticee on September 30, 2010. During the hearing, the AR submitted the reply to the SCN vide letter dated September 27, 2010 and reiterated the submissions made there under. In addition to its reply dated September 27, 2010, Noticee submitted copies of letter of client Haresh Soni and Jaiprakash Jain and KYC copy of Jaiprakash Jain vide letter dated October 12, 2010. The Noticee vide its submissions dated September 27, October 12, 2010 and the personal hearing on September 20, 2010 made the following submissions:
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Source: SecMarx — sebi:BM/AO-128/2010. 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.