sebi:IVD-ID6/KSERA-I-SPJ/AO/DRK/ASG/EAD3-199-2009/102-2010
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Facts / Headnote
Penalty imposed on the noticee for violations of PFUTP Regulations and Stock Brokers Regulations
Provisions invoked
- s. 15
- s. 15H
- s. 15J
Regulations
- Reg. 7
- Reg. 3
- Reg. 4(1)
Parties
- S.P.J. Stock Brokers Pvt. Ltd.
Holding
The noticee S.P.J. Stock Brokers Pvt. Ltd. was found to have violated Regulation 4(1) & 4(2)(a), (b), (e) and (g) of the PFUTP Regulations and Clauses A(1) and A(3) of the Code of Conduct for Stock Brokers by executing synchronized/circular trades in the scrip of KSERA, and a consolidated penalty of Rs. 75,000 was imposed (Rs. 50,000 under Section 15HA and Rs. 25,000 under Section 15HB of the SEBI Act).
Full text
Page 2 of 12 during the Investigation Period the price of the scrip opened at ` 83.00, reached period low of ` 79.90 on June 01, 2004, touched a high of ` 164.00 on October 28, 2004 and closed at ` 151.75 on October 29,
Page 3 of 12 Rules’) to inquire into and adjudge under Section 15HA and 15 HB of the SEBI Act, the violations of Regulation 4(1) & 4(2) (a), (b), (e) and (g) of SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 2003 (hereinafter referred to as the ‘PFUTP Regulations’) and Clauses A(1) and A(3) of the code of conduct prescribed for Stock Brokers in Schedule II under Regulation 7 of SEBI (Stock Brokers and Sub-Brokers) Regulations, 1992 (hereinafter referred to as ‘Stock Brokers Regulations’) alleged to have been committed by S.P.J. Stock Brokers Pvt. Ltd. (hereinafter referred to as ‘the noticee’).
Page 4 of 12 i. The noticee denied all the allegations leveled against it in the SCN. ii. The noticee stated that all the trades in the scrip of K SERA were executed by it in accordance with rules of the stock exchange. The screen based trading system of the Bombay stock Exchange does not allow the identity of the counter party broker and client to be known. iii. The noticee submitted that it did not collude with any of the stock brokers or clients as alleged in the SCN and the pattern of trade as indicated in the SCN was not known to the noticee. The noticee did not have nay knowledge of the synchronized orders as alleged in the SCN. iv. The noticee also contended that the SCN did not establish any relationship or understanding between the noticee and the other members of the group. v. The noticee submitted that the SCN did not establish how the price movement of the scrip of KSERA during the investigation period was artificial, abnormal or one that is the result of the alleged circular trading.
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Source: SecMarx — sebi:IVD-ID6/KSERA-I-SPJ/AO/DRK/ASG/EAD3-199-2009/102-2010. 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.