sebi:EAD-7/BJD/BKM/95/2018-19

SEBI · SEBI · 2016-05-13 · B J Dilip, Adjudicating Officer

This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.

Facts / Headnote

Allegations of violation of PFUTP Regulations and Code of Conduct for Stock Brokers not established; no penalty imposed

Provisions invoked

• s. 15
• s. 19
• s. 12A
• s. 15H
• s. 15J

Regulations

• Reg. 7
• Reg. 2(c)
• Reg. 3
• Reg. 4
• Reg. 4(2)
• Reg. 3(a)
• Reg. 3(b)

Parties

• Crosseas

Holding

The allegation of violation of PFUTP Regulations and Code of Conduct for Stock Brokers by the Noticee (Crosseas) in the matter of Inventure Growth and Securities Limited was not established, and no penalty was imposed.

Full text

Adjudication Order against the Crosseas in the matter of Inventure Growth and Securities Limited Page 2 of 24 the Noticee had contravened the provisions of Regulations 3(a), (b), (c), (d), 4(1), 4(2) (a)(b) and (g) of SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 2003 (hereinafter referred to as ‘PFUTP Regulations’). It was further alleged that the Noticee acted as a broker and counterparty broker for ‘self-trades’ in its own account and, hence, failed to exercise due skill and care and thus, violated Clause A(3), A(4) and A(5) of the Code of Conduct of Stock Brokers as specified under Schedule II read with Regulation 7 of the SEBI ( Stock Brokers and Sub- Brokers) Regulation, 1992( hereinafter referred to as the ‘Stock Brokers Regulations’).

Adjudication Order against the Crosseas in the matter of Inventure Growth and Securities Limited Page 3 of 24 issued to the Noticee under Rule 4 of SEBI Adjudication Rules to show cause as to why an inquiry be not held against it in terms of Rule 4 of the Adjudication Rules and penalty be not imposed under Section 15 HA and 15 HB of the SEBI Act for the violations alleged to have been committed by the Noticee. Noticee vide letters dated February 16, 2018, February 23, 2018 requested for the inspection of documents which were allowed on March 21,

Adjudication Order against the Crosseas in the matter of Inventure Growth and Securities Limited Page 4 of 24 10. The trading analysis for the listing days has been carried out in two patches i.e., for the listing day i.e. August 04, 2011 and the rest of the investigation period (August 05, 2011 to August 11, 2011 - 'investigation period post listing day'). The market price of the share as on March 08, 2016 is Rs 12.50 (adjusted price for bonus issue on May 22, 2012 in the ratio 3:1 is Rs 50.00).

Source: SecMarx — sebi:EAD-7/BJD/BKM/95/2018-19. 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.