sebi:EAD-5/BS/AO/03/2017-18
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Facts / Headnote
Disposed of without penalty; allegations not established
Provisions invoked
- s. 15
- s. 15I
Regulations
- Reg. 7
- Reg. 3
- Reg. 3(a)
Parties
- R. M. Shares Trading Pvt. Ltd.
Holding
The allegations that R. M. Shares Trading Pvt. Ltd. violated Regulations 3(a) to (d), 4(1), 4(2)(a) and (g) of the PFUTP Regulations and Clause A(3) of the Code of Conduct for Stock Brokers were not established, and the adjudication proceedings were disposed of without penalty.
Full text
Adjudication Order against R. M. Shares Trading Pvt. Ltd. in the matter of Rushil Décor Ltd. Page 2 of 9 as PFUTP Regulations), SEBI (Stock Brokers and Sub Brokers) Regulations, 1992 (hereinafter referred to as Stock Brokers Regulations) by R M Shares Trading Pvt. Ltd. (hereinafter referred to as the Noticee) during the period July 07, 2011 to July 12, 2011 (hereinafter referred to as the Investigation Period).
Adjudication Order against R. M. Shares Trading Pvt. Ltd. in the matter of Rushil Décor Ltd. Page 3 of 9 6. Vide letter dated December 20, 2016 Noticee filed reply to the SCN and made following submissions: i. The self trades are not done manually but through the algorithmic Trading Software approved by the Exchanges. ii. The instances of self trades are purely incidental to the execution of the trading strategy and are not planned to be executed. The random nature of timing, quantity, dealers and partial matching with other market participants substantiate that these are unintentional and are a matter of pure co- incidence. iii. The human involvement is very less for putting the parameters of orders for the day and the trading take place through the algorithmic trading software connected to the server/ CTCL ID and the orders are passed on to the NSE/BSE Exchanges and the same are matched at the Exchange level. iv. All the trades/ transactions are Jobbing/ Arbitrage in nature and due to High Speed of trading in small lots spread across the day evenly.
Adjudication Order against R. M. Shares Trading Pvt. Ltd. in the matter of Rushil Décor Ltd. Page 4 of 9 b. Does the violation, if established, attract monetary penalty under Sections 15HA and 15HB of SEBI Act, 1992?
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Source: SecMarx — sebi:EAD-5/BS/AO/03/2017-18. 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.