sebi:EAD/NP/JS/AO/22/2017
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Facts / Headnote
Show cause notices disposed of without penalty; violations not established
Provisions invoked
- s. 15
- s. 15H
Regulations
- Reg. 7
- Reg. 2(c)
- Reg. 3
- Reg. 4
- Reg. 4(2)
- Reg. 4(1)
- Reg. 4(2)(a)
- Reg. 3(a)
- Reg. 9
- Reg. 4(2)(g)
- Reg. 3(b)
- Reg. 3(c)
Parties
- B. P. Fintrade Private Ltd
- Gajanan Enterprises
- B. P. Equity Pvt Ltd
Holding
Noticee No.1 and Noticee No.2 did not violate Regulations 3(a),(b),(c)&(d) and 4(1),4(2)(a)&(g) of PFUTP Regulations by their self-trades in MIC, and Noticee No.3 did not violate Clause A(2) of Code of Conduct for Stock Brokers; all show-cause notices were disposed of with no penalty.
Full text
P a g e 2 | 32 no. 3) who have been alleged to have entered into self-trades repeatedly, which created artificial volume in the scrip, without change in ownership of shares, leading to false and misleading appearance of trading of the scrip of MIC in the securities market. The Investigation alleged that the Noticee No 1 and Noticee no 2 entered into self-trades at both BSE and NSE, which created artificial volume in the scrip and false and misleading appearance of trading in the scrip in violation of Regulations 3(a), (b), (c) & (d) and 4(1), 4(2) (a) & (g) of SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 2003 (hereinafter referred as to as PFUTP Regulations). The investigation report also alleged that the Noticee no.3 failed to adhere to Clause A (2) of the Code of Conduct for Stock Broker as prescribed under Schedule II read with Regulation 7 of SEBI (Stock Broker and Sub broker) Regulations, 1992.
P a g e 3 | 32 in the said SCN. The Noticees were given 15 days of time to make their submissions against the allegations made in SCNs.
P a g e 4 | 32 6. Noticee no. 1 vide its reply dated February 22, 2016, (received on February 24, 2016) replied to the charges levelled against it in the SCN. Noticee no. 1 denied all charges levelled against it and requested for personal hearing.
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Source: SecMarx — sebi:EAD/NP/JS/AO/22/2017. 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.