sebi:IVD-ID6/KSERA-SPJ/AO/DRK/ASG/EAD3-277/43-2011
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Facts / Headnote
Penalty imposed on the noticee for violations of PFUTP Regulations and Stock Brokers Code of Conduct
Provisions invoked
- s. 15
- s. 15H
- s. 15J
Regulations
- Reg. 7
- Reg. 3
- Reg. 4(1)
- Reg. 31
Parties
- S.P.J. Stock Brokers Pvt. Ltd.
Holding
The noticee, S.P.J. Stock Brokers Pvt. Ltd., was found to have indulged in circular and synchronized trades in the scrip of KSERA during the investigation period, resulting in creation of artificial volume, manipulation of price, and distortion of market equilibrium, in violation of Regulations 4(1) & 4(2)(a), (b), (e), (g) and (n) of the PFUTP Regulations and Clauses A(1) to A(5) of the Code of Conduct for Stock Brokers. A consolidated penalty of Rs. 2,50,000/- was imposed on the noticee.
Full text
Page 2 of 13 of the scrip opened at ` 74.35 on May 2, 2005 reached a high of ` 97.50 on May 24, 2005 and closed at ` 89.25 on July 1, 2005.
Page 3 of 13 (Stock Brokers and Sub-Brokers) Regulations, 1992 (hereinafter referred to as ‘Stock Brokers Regulations’) alleged to have been committed by the noticee.
Page 4 of 13 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 any 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-SPJ/AO/DRK/ASG/EAD3-277/43-2011. 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.