sebi:EAD/KS/MKG/AO/142/2018-19
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Facts / Headnote
Show Cause Notice disposed of without imposition of any penalty
Provisions invoked
- s. 15
- s. 19
- s. 15H
- s. 15I
- s. 15J
Regulations
- Reg. 7
- Reg. 3(a)
- Reg. 3(a)(b)(c)
Parties
- Marwadi Shares & Finance Ltd.
Holding
The Show Cause Notice alleging that Marwadi Shares & Finance Ltd. violated Clause A(2) of the Code of Conduct for Stock Brokers read with Regulation 7 of the Broker Regulations by acting as broker and counterparty broker for self-trades of Chandarana was disposed of without imposition of any penalty, as the alleged violations were not established against the Noticee.
Full text
Page 2 of 13 Particulars BSE (Rs.) NSE (Rs.) High price (during post listing investigation period) 390.00 385.00 Low Price (during post listing investigation period) 204.70 204.50 Close Price ( On 31/10/2011) 206.40 205.80 Traded Quantity 2,52,33,620 3,13,38,101
Page 3 of 13 APPOINTMENT OF ADJUDICATING OFFICER 4. SEBI, vide communication of order dated June 28, 2017 appointed the undersigned as Adjudicating Officer under Section 15 I of the Securities and Exchange Board of India Act, 1992 (hereinafter referred to as "SEBI Act"), read with Rule 3 of the SEBI (Procedure for Holding Inquiry and Imposing Penalties by Adjudicating Officer) Rules, 1995 (hereinafter referred to as ‘Rules’) to inquire into and adjudge under Section 15HB of SEBI Act, the alleged violation of the provisions of Clause A(2) of the Code of conduct for Stock Brokers as stipulated in schedule II read with Regulation 7 of the Broker Regulations, 1992 by Noticee.
Page 4 of 13 respect to past matters as well as existing matter and such decision is required to be respected for the investigation. b) The said media report refers the SEBI communication to Finance Ministry in reply to the question of Member of Parliament Gajendra Singh Shekhawat on SEBI’s selective action against certain brokers and found entities executing Self-Trades. c) In response to the query from MP, SEBI is found to have stated that “Stock Exchanges have already taken measures for preventing self-trade and no further action is envisaged in the matter.” d) It claims to have further stated that “Self-Trades of the previous period (before preventive mechanism was put in place by exchanges) that do not appear to be manipulative will not warrant any penal action. In cases that are pending investigation, they would be disposed of accordingly”. e) In the fact of the case of UJAAS ENERGY Ltd., the self trades took place between October 20, 2011 to October 31, 2011 has been placed on record at para 3 of the SCN. No adverse observation has been found to have been derived on that count of price manipulation. Therefore it is not the case of manipulation and therefore on account of above stand taken by SEBI this matter needs disposal accordingly. f) The adverse opinion as to the alleged trades is found to have stated at para 4 of the SCN, which stated that “It has been alleged….has indulged in self-trades.” This clearly and evidently makes it clear that these observation attracts
You have read the preview. Create a free account to read the full order, track this party, and analyse it in Ontology.
Free accounts include 10 searches/day with full order access.
Source: SecMarx — sebi:EAD/KS/MKG/AO/142/2018-19. 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.