sebi:EAD/PM-NK/AO/27/2017-18
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Facts / Headnote
Show Cause Notice disposed of without imposition of any penalty
Provisions invoked
- s. 15H
- s. 15I
Regulations
- Reg. 2(c)
- Reg. 3
- Reg. 4
- Reg. 4(2)
- Reg. 9
- Reg. 4(2)(a)
Parties
- Adroit Financial Services Private Limited
- JMP Securities Private Limited
Holding
The Adjudicating Officer held that the alleged violations of the PFUTP Regulations, 2003 and the Code of Conduct for Stock Brokers by the Noticee were not established, and disposed of the Show Cause Notice without imposing any penalty.
Full text
Page 2 of 12 4. It was observed that JMP Securities Private Limited through proprietary trades had executed self-trades in the scrip of Datsons. The details of the such trades is as under Entity Name Buy & Sell Broker Total Self Trade Volume Total Self Trade Count days on which self- trades done % Of Self Traded Qty. To Market Volume JMP Securities Private Limited JMP Securities Private Limited 2397348 127 8 0.36
Page 3 of 12 7. A Show Cause Notice A&E/EAD/PM-NK/17660/2017 dated July 28, 2017 (hereinafter referred to as “SCN”) was issued to the Noticee under Rule 4 of the Adjudication Rules to show cause as to why an inquiry should not be initiated and penalty be not imposed under section 15HA of the SEBI Act, 1992 for the alleged violations of provisions of Regulations 3 (a), (b), (c), (d), 4(1), 4(2)(a) and (g) and under section 15HB of the SEBI Act, for the alleged violations of provisions of Clause A (3), A (4) and A (5) of the Code of Conduct for Stock Brokers, Schedule II read with Regulation 9 (f) of SEBI (Stock Brokers and Sub-Brokers) Regulations, 1992 as specified in the SCN. Copies of the documents relied upon in the SCN were provided to the Noticee along with the SCN.
Page 4 of 12 The Noticee submitted that its buy volume as a broker was mere 1.86% (on BSE) & 2.08% (on NSE) which is insignificant to have any impact on market. Further the buy volume as a client was mere 1.20% (on BSE) & 1.50% (on NSE) which is insignificant to have any impact on market. The Noticee’s self-trade volume vis-à-vis total market volume in the scrip of Datsons are as per the table below:
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Source: SecMarx — sebi:EAD/PM-NK/AO/27/2017-18. 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.