sebi:IVD-ID4/SPML-HPG/AO/DRK/SS/EAD3/178-09/81-2010
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Facts / Headnote
Penalty of Rs.20,000 imposed on HPG Financial Services Pvt. Ltd. under Section 15HB for acting as unregistered sub-broker
Provisions invoked
- s. 15
- s. 12
- s. 15H
- s. 15J
Parties
- HPG Financial Services Pvt. Ltd.
Holding
HPG Financial Services Pvt. Ltd. violated Section 12 of the SEBI Act read with SEBI circular no. SMD/Policy/CIR-/98 dated January 16, 1998 by acting as an unregistered sub-broker for Radico Trading Pvt. Ltd. through Accord Capital Markets Ltd. and TCP Stock Brokers Ltd., and is liable to a penalty of Rs.20,000 under Section 15HB of the SEBI Act.
Full text
Page 2 of 12 daily average volumes of shares traded during the period under examination were 770 shares. 3. NSE observed that on April 16, 2004 it was reported in the press that SPML had received three orders to the tune of Rs.71 crores. On NSE the price of the scrip opened at Rs.32.00/- on March 15, 2004 and touched a high of Rs.62.25/- (i.e. 92.53% rise in 22 trading days) on April 15, 2004 and closed at Rs.47.00/- (i.e. overall 46.88% rise 34 trading days) on May 03, 2004.
Page 3 of 12 SHOW CAUSE NOTICE, REPLY AND HEARING 6. A Show Cause Notice No. A&E/SPML/DRK/SS/191822/2010 dated January 20, 2010 (hereinafter referred to as the ‘SCN’) was served on the noticee through Registered Post Acknowledgment Due (RPAD) in terms of the provision of Rule 4(1) of the Adjudication Rules, seeking reply of the noticee as to why an inquiry should not be held against it in respect of the violation alleged to have been committed by the noticee.
Page 4 of 12 gross quantity for the period for its clients, Rashi Holdings Pvt. Ltd. (hereinafter referred to as ‘Rashi’) and Mayank Securities Pvt. Ltd. (hereinafter referred to as ‘Mayank’). The major client dealing through Accord was Siddhartha & Co. (hereinafter referred to as ‘Siddhartha’) wherein Siddhartha was also connected to the noticee and which had also dealt as an unregistered sub-broker for the common client Radico. It was stated that the Siddhartha’s trades accounted for 22.24% to the market gross quantity for the period. Siddhartha had mainly bought and sold during the day with small net position and was observed to be dealing on 12 of the 34 trading days and was a net seller during the period.
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Source: SecMarx — sebi:IVD-ID4/SPML-HPG/AO/DRK/SS/EAD3/178-09/81-2010. 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.