sebi:EAD-2/AO/45/2012
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Facts / Headnote
Penalty imposed on Noticee for violation of Code of Conduct under Broker Regulations; allegation of violation of PFUTP Regulations not established
Provisions invoked
- s. 15
- s. 15H
- s. 15J
Regulations
- Reg. 7
- Reg. 199
- Reg. 4
- Reg. 4(2)(a)
Parties
- Action Financial Services (India) Ltd. (AFSL)
Holding
The Noticee's violation of Regulations 4(2)(a) and 4(2)(n) of the PFUTP Regulations was not established beyond reasonable doubt, but it was found to have violated Clause A(1), (2), (3), (4) and (5) of the Code of Conduct under Schedule II of the Broker Regulations by failing to exercise due care and diligence, warranting a monetary penalty of Rs. 50,000 under Section 15HB of the SEBI Act.
Full text
Page 2 of 11 through members DPS Shares & Securities (P) Ltd. (DPS), Action Financial Services (India) Ltd. (hereinafter referred to as “the Noticee”), Galaxy Broking Ltd. (Galaxy) and Pilot Credit Capital Ltd. (Pilot) were having a concentration of 20.77%, 19.37%, 17.15% and 5.43% respectively, in gross purchase.
Page 3 of 11 alleged violation of the provisions of Regulations 4 (2)(a) and 4 (2)(n) of the PFUTP Regulations and Regulation 7 read with Clause A (1), (2), (3), (4) and (5) of Code of Conduct specified under Schedule II of the Broker Regulations.
Page 4 of 11 of shares traded in the scrip of G -Tech and observed that the consent order disposed the said proceedings.
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Source: SecMarx — sebi:EAD-2/AO/45/2012. 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.