sebi:IVD-ID-1/BPE/AO/DRK/VB/EAD-3/725/50-2015
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Facts / Headnote
Penalty of Rs. 11,00,000 imposed on the noticee for failure to exercise due skill and care in terms of Clause A(2) of the Code of Conduct for Stock Brokers.
Provisions invoked
- s. 15
- s. 15H
- s. 15J
Regulations
- Reg. 7
Parties
- B.P Equities Pvt. Ltd.
Holding
The noticee stock broker was found to have violated Clause A(2) of the Code of Conduct for Stock Brokers by failing to exercise due skill and care, as its client executed large volumes of self trades (703 on BSE and 1886 on NSE) leading to false and misleading appearance of trading in the scrip of EAL. A penalty of Rs. 11,00,000 was imposed under Section 15HB of the SEBI Act.
Full text
Page 2 of 10 Rule 3 of SEBI (Procedure for Holding Inquiry and Imposing Penalties by Adjudicating Officer) Rules, 1995 (hereinafter referred to as ‘Rules’) to inquire into and adjudge under Section 15HB of the SEBI Act for failure to exercise due skill and care in terms of Clause A(2) of the Code of Conduct for Stock Brokers as specified under Schedule II read with Regulation 7 of SEBI (Stock Brokers and Sub Brokers) Regulations,1992 (hereinafter referred to as ‘Stock Broker Regulations’) alleged to have been committed by B.P Equities Pvt. Ltd. (hereinafter referred to as ‘BPEL / noticee’).
Page 3 of 10 4. The noticee vide its letter dated April 07,2014 had submitted its reply to the SCN wherein it has given the following details with regard to its client Gajanan -
Page 4 of 10 g) The client has carried out a substantial amount of delivery trades, which have been settled by us on the exchange, clearly substantiating that these were executed with an intention of transfer of beneficial interest in the shares to them and for no other purpose.
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Source: SecMarx — sebi:IVD-ID-1/BPE/AO/DRK/VB/EAD-3/725/50-2015. 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.