sebi:IVD-ID5/OPG/AO/DRK/AKS/EAD-3/279/45-11
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Facts / Headnote
Penalty imposed on the noticee for violation of PFUTP Regulations and Code of Conduct for Stock Brokers
Provisions invoked
- s. 15
- s. 15H
- s. 15J
Regulations
- Reg. 7
- Reg. 3
- Reg. 4(2)
Parties
- OPG Securities Pvt. Ltd.
Holding
The noticee, OPG Securities Pvt. Ltd., was held to have violated Regulations 3(a), (d), 4(1), 4(2)(a) and (g) of the PFUTP Regulations and Clauses A(1), A(3), A(4) and A(5) of the Code of Conduct for Stock Brokers by executing self trades/fictitious trades that created artificial volumes and gave a false and misleading appearance of trading in the scrip of AML at BSE. A consolidated penalty of Rs. 2,50,000 was imposed on the noticee.
Full text
Page 2 of 12 2. The Integrated Surveillance Department (hereinafter referred to as ‘ISD’) of SEBI had observed during the period February 16, 2009 to March 19, 2009 and March 20, 2009 to April 28, 2009 that the movement of the price in the scrip of AML does not conform to the movement of index. ISD initiated investigation and observed that prima facie an attempt was made to artificially create interest in the scrip and maintain the price.
Page 3 of 12 SHOW CAUSE NOTICE, HEARING AND REPLY 4. A Show Cause Notice (herein after referred to as ‘SCN’) dated 29.04.2011 was served on the noticee by “Registered Post Acknowledgement Due” in terms of the provisions of Rule 4 of the SEBI (Procedure for Holding Inquiry and Imposing Penalties by Adjudicating Officer) Rules, 1995 requiring it to show cause as to why an inquiry should not be held against it and why penalty, if any, should not be imposed on it under Sections 15HA and 15HB of the SEBI Act. In the said notice, it was alleged that the noticee had created artificial volumes in the scrip and gave a false and misleading appearance of trading in the scrip at BSE.
Page 4 of 12 date of receipt of letter to file the reply and was also provided with a copy of the investigation report. 6. The noticee vide its letter dated 08.06.2011 had submitted a detailed reply to the SCN wherein it stated as follows-
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Source: SecMarx — sebi:IVD-ID5/OPG/AO/DRK/AKS/EAD-3/279/45-11. 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.