sebi:EAD/KS/MKG/AO/117/2017-18
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Facts / Headnote
Adjudication proceedings disposed of in favour of the Noticee; no penalty imposed (exonerated)
Provisions invoked
- s. 15
- s. 15H
- s. 15J
Regulations
- Reg. 7
- Reg. 3
- Reg. 7o
- Reg. 3(a)
Parties
- R. M. Shares Trading Private Limited
Holding
The Adjudicating Officer held that the Noticee (R. M. Shares Trading Private Limited) did not violate the PFUTP Regulations or the Code of Conduct for Stock Brokers, as the self-trades in the scrip of Ujaas Energy Ltd were not intentional or manipulative and were incapable of creating artificial volume.
Full text
Page 2 of 24 Particulars BSE (Rs.) NSE (Rs.) Traded Quantity 2,52,33,620 3,13,38,101 2. It is noted from Investigation Report (IR) that R. M. Shares Trading Private Limited (hereinafter to as “R. M. Shares / Noticee”) entered into self-trades repeatedly from proprietary trading account on NSE and BSE which created artificial volume in the scrip of UEL, leading to false and misleading appearance of trading in the securities market. Based on the findings of the investigation, SEBI initiated Adjudication Proceedings against the Noticee under Section 15 HA of Securities and Exchange Board of India Act, 1992 (hereinafter referred to as "SEBI Act") for the alleged violation of the provisions of Regulations 3(a), (b), (c), (d), 4(1), 4(2)(a) and (g) of SEBI (Prohibition of Fraudulent and Unfair Trade Practices) Regulations, 2003 (hereinafter referred to as "PFUTP Regulations") and under Section 15HB of SEBI Act for the alleged violation of Clause A (3), (4) and (5) of the Code of Conduct for Stock Brokers as specified under Schedule II read with Regulation 7 of SEBI (Stock Brokers and Sub Brokers) Regulations, 1992. (Hereinafter referred to as "Brokers Regulations").
Page 3 of 24 under section 15HA of SEBI Act for the alleged violation of Regulations 3(a), (b), (c), (d), 4(1), 4(2)(a) and (g) of PFUTP Regulations and under Section 15HB of SEBI Act for the alleged violation of Clause A (3), (4) and (5) of the Code of Conduct for Stock Brokers as specified under Schedule II read with Regulation 7 of Brokers Regulations as specified in the said SCN. The Noticee was given 15 days of time to make their submission against the allegations made in the SCN.
Page 4 of 24 filed its reply to the SCN. The Noticee inter alia made the following submissions in the aforesaid letter- a) In continuation to our reply dated February 2, 2015, we humbly reiterate that-
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Source: SecMarx — sebi:EAD/KS/MKG/AO/117/2017-18. 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.