sebi:IVD-ID2/MIL-ASL/AO/DRK/ASG/EAD3/248/14-2011
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Facts / Headnote
Penalty imposed on the noticee for failure to exercise due skill, care and diligence
Provisions invoked
- s. 15
- s. 15H
- s. 15J
- s. 138
Regulations
- Reg. 26
Parties
- Amrut Securities Ltd.
Holding
The noticee Amrut Securities Ltd., a sub-broker, was held liable for violating Regulation 26(xvi) of the Stock Brokers Regulations for failure to exercise due skill, care and diligence in its dealings in the scrip of MIL during September-October 2000, and a penalty of Rs. 10,000 was imposed under Section 15HB of the SEBI Act.
Full text
Page 2 of 8 • Period I: During this period the movement of the scrip was by and large in sync with the general trend in the prices of various scrips especially of the companies associated with Information, Communication & Entertainment sector. • Period II: It was observed that at ASE & BSE, there was a concentrated trading activity among few clients viz. Shri Tushar S. Jhaveri and Shri Sanjay R Shah and entities connected with them. They have appeared to have been involved in circular trading and created the false volumes in the market. In BSE they had traded through the sub-broker Amrut Securities Ltd. (hereinafter referred to as ‘the noticee’), amongst others.
Page 3 of 8 6. In the SCN it was alleged that the noticee had failed to exercise due skill, care and diligence in its dealings in the scrip of MIL during the period of September- October 2000 (Period- II) and that these actions amounted to a liability for monetary penalty under Regulation 26(xvi) of the Stock Brokers Regulations.
Page 4 of 8 personal hearing was postponed. The undersigned had subsequently issued a fresh opportunity of personal hearing to the noticee on December 08, 2010 vide the hearing notice dated November 19, 2010. The noticee sought an adjournment to the same vide its e-mail dated December 03, 2010 and a final opportunity of hearing was granted to the noticee on January 27, 2011 vide the final hearing notice dated January 06, 2011 which was served on the noticee by Registered Post Acknowledgment Due. The noticee sought an adjournment of the hearing vide its letter dated January 25, 2011 and another opportunity of hearing was granted to it on February 22, 2011 at the SEBI, WRO vide the final hearing notice dated February 04, 2011.
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Source: SecMarx — sebi:IVD-ID2/MIL-ASL/AO/DRK/ASG/EAD3/248/14-2011. 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.