sebi:CO/61/ISD/10/2004

SEBI · SEBI · 2003-09-17 · G.N. Bajpai, Chairman

This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.

Facts / Headnote

Suspension of certificate of registration as sub-broker for a period of 4 months

Provisions invoked

• s. 4(3)

Regulations

• Reg. 13(2)
• Reg. 13(4)
• Reg. 13
• Reg. 200
• Reg. 15(b)

Parties

• SBM Investments

Holding

The certificate of registration granted to SBM Investments as a sub-broker was suspended for 4 months for participation in synchronized trading in Global Trust Bank shares in violation of Clause D(5) of the Code of Conduct and Regulation 15(b).

Full text

Home » Enforcement » Orders » Orders of Chairman/Members Enforcement Enforcement▼ Order against SBM Investments Ltd Oct 14, 2004 | Orders : Orders of Chairman/Members SECURITIES AND EXCHANGE BOARD OF INDIA

“BSE”) and the National Stock Exchange of India (hereinafter referred to as “NSE”). 1.2 SEBI Conducted investigation into the transactions in the shares of Global Trust Bank (hereinafter referred to as “GTB”) a Commercial Bank listed on NSE and BSE. In the course of investigation, it was noted that Mukesh Babu Securities Ltd. had entered into several synchronized transactions in respect of the scrip of GTB during the period 18.11.1999 to 3.12.1999. The details of the transactions are as under: Trade Date B Order Time S Order Time Trade Time Buy & Sell

It was alleged that the above transactions were synchronized/matched transactions and that these were undertaken to manipulate the price of the scrip of GTB. 2.0 Enquiry Proceedings 2.1 In the light of the findings of the investigation that the said sub-broker had along with Mukesh Babu Securities Ltd, Classic Credit Limited and Triumph International entered into synchronized transactions, an enquiry officer was appointed vide order dated 17.09.2003 under the SEBI (Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalties) Regulations 2002 (hereinafter referred to as the “Enquiry Regulations”) to enquire into the alleged violations by the said sub-broker. 2.2 The enquiry officer issued show cause notice to the said broker on 29.09.2003 and thereafter also offered an opportunity for personal hearing to the said sub-broker. The enquiry officer after considering the reply and submissions of the said sub-broker submitted his report to SEBI on 06.05.2004. 2.3 In his report the enquiry officer has found that the said broker acted on behalf of Classic Credit Ltd. an entity associated with and controlled by Ketan Parekh. He has also found that the broker viz. Mukesh Babu Securities which the said sub-broker was affiliated has stated that all the transactions were done by them on behalf of the said broker. The enquiry officer has found that in six instances trades were synchronized and that the said broker had thereby violated Clause D (5) of the Code of Conduct for sub

Source: SecMarx — sebi:CO/61/ISD/10/2004. 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.