sebi:EAD-2/DSR/RG/06/2013
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Facts / Headnote
Charges not established; matter disposed of without penalty
Provisions invoked
- s. 15
- s. 12A
- s. 15H
- s. 27
Regulations
- Reg. 3
- Reg. 3(a)
Parties
- Genuine Stock Brokers Private Limited
Holding
The charges against Genuine Stock Brokers Private Limited for violation of Section 12A(a), (b) and (c) read with Regulations 3 and 4 of the PFUTP Regulations do not stand established and the matter is accordingly disposed of without penalty.
Full text
Page 2 of 9 Trading in the shares commenced on both National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) from May 12, 2011 and on that day the price of the scrip opened at `30.00 and `29, went up to a high of `48.75 / `48.70, went down to a low of `17.30 / `17.70, and closed at `19.00 / `19.05, respectively and thus, registering a fall of around 35%.
Page 3 of 9 Notice, Reply & Personal Hearing: 6. A notice dated June 05, 2013 (hereinafter referred to as the ‘SCN’) was issued to the Noticee in terms of Rule 4 of the Adjudication Rules requiring it to show cause as to why an inquiry should not be held against it for the alleged violations. It was alleged in the SCN that the Noticee had dealt in the scrip of SPL as a client and executed 208 self trades on the listing day of the IPO of SPL and thereby had created artificial / fictitious volumes in the said scrip. The Noticee vide letter dated June 14, 2013 submitted its reply to the said SCN.
Page 4 of 9 9. Before moving forward, it will be appropriate to refer to the relevant provisions which read as under:- Relevant provisions of the SEBI Act, 1992: Section 12A. No person shall directly or indirectly – (a) use or employ, in connection with the issue, purchase or sale of any securities listed or proposed to be listed on a recognised stock exchange, any manipulative or deceptive device or contrivance in contravention of the provisions of this Act or the rules or the regulations made there under; (b) employ any device, scheme or artifice to defraud in connection with issue or dealing in securities which are listed or proposed to be listed on a recognized stock exchange; (c) engage in any act, practice, course of business which operates or would operate as fraud or deceit upon any person, in connection with the issue, dealing in securities which are listed or proposed to be listed on a recognized stock exchange, in contravention of the provisions of this Act or the rules or the regulations made there under;
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Source: SecMarx — sebi:EAD-2/DSR/RG/06/2013. 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.