sebi:EAD/NP/JS-AS/AO/25/2017
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; no penalty imposed
Provisions invoked
- s. 15
- s. 15H
Regulations
- Reg. 2(c)
- Reg. 3
- Reg. 4
- Reg. 4(1)
- Reg. 4(2)
- Reg. 3(a)
- Reg. 9
Parties
- Inventure Growth & Securities Limited
Holding
The Adjudicating Officer held that the Noticee, Inventure Growth & Securities Ltd., did not violate Regulation 3(a)-(d) and 4(1), 4(2)(a) & (g) of the SEBI PFUTP Regulations, 2003 or the Code of Conduct for Stock Brokers, and disposed of the show cause notice without imposing any penalty.
Full text
P a g e 2 | 13 as prescribed under clause A(3), A(4) & A(5) of the Code of Conduct for Stock Brokers as specified under Schedule II read with Regulation 9 of SEBI(Stock Brokers and Sub Brokers) Regulations, 1992.
P a g e 3 | 13 Entity Name Broker On Both Buy & Sell Side Traded Volume Total Self Trade Volume Total Self trade count Self trade count from same termi nal ID No of days on which self trades done % of self traded qty with client’s traded vol (%) Net LTP contribut ion by self trades (Rs.) Inventure Growth & Securities Ltd. Inventure Growth & Securities Ltd. 599809 30374 57 22 14 5.06 -0.17
P a g e 4 | 13 150 securities as per permissible criteria of quantity and price defined by the Exchanges on time to time basis. In MIC we had applied the same set of parameters and carried out arbitrage & jobbing. You can take note that out of total investigation period of 93 trading days, we had traded only 48 days. Further, it is to be noted that our average volume in NSE and BSE is only 1.58 % & 2.81 % respectively. More than 16 dealers had carried out trading arbitrage and jobbing in MIC after finding that the said securities is fulfilling pre requisite parameters as defined earlier portion in this reply. However it may be noted that the volume in MIC on any day was not as significant to induce any movement of price of the security. Further, it can also be observed that in case of lack of opportunity, we had carried out extremely negligible or even zero volume. Had there been any intention to influence the price, the trades would have been carried out daily and that too with large volumes that impact the price of the security. Market Practice of Arbitrage & Jobbing: It is a common market practice under Arbitrage & Jobbing activity to place orders of 1 (one) share or small quantity at a fixed interval of say, 10 paise, 25 paise, 50 paise etc. This is done by the dealers with an intention to get the real time status of the ruling market price as the bid and offer rate prices on the Market watch window, sometimes do not get refreshed on a real time basis due to connectivity
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Source: SecMarx — sebi:EAD/NP/JS-AS/AO/25/2017. 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.