sebi:IVD-ID7/SVIL/AO/DRK/MD/EAD3/285/51-2011

SEBI · SEBI · 2008-12-10 · D. Ravi Kumar, Chief General Manager & Adjudicating Officer

This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.

Facts / Headnote

Penalty imposed on the noticee for failure to furnish information as required by investigation summonses.

Provisions invoked

• s. 11
• s. 15A
• s. 15
• s. 15J
• s. 12
• s. 11C(3)
• s. 11C(2)

Parties

• M. Bhiwaniwala & Co., Stock Broker CSE (SEBI Reg. No. INB030049211)

Holding

The Adjudicating Officer imposed a penalty of Rs. 50,000 on M. Bhiwaniwala & Co. for violating Section 11C(2) read with Section 11C(3) of the SEBI Act by failing to furnish information sought through summonses dated March 21, 2007 and May 17, 2007.

Full text

Page 2 of 11 4. Total traded quantity as provided by CSE in the scrip was 70,15,661 shares. The trading by major stock-brokers was as follows:

Page 3 of 11 noticee had failed to furnish details of buyers to the extent of approximately 10.50 lakh shares. In the SCN, it was further alleged that majority of the noticee’s trades were cross deals wherein both buy and sell orders were executed by the noticee. It was alleged that although the transactions were claimed to be for different clients, the client codes were entered randomly, reason being quoted as ‘to avoid margins’. The trades were then distributed to their respective clients. It was also alleged that there was no settlement-wise pay-in / pay-out of funds as well as securities to clients.

Page 4 of 11 10. The aforesaid SCN was served on the noticee and proof of service is on record. Noticee failed to reply to the SCN even after receiving the SCN. Considering the

Source: SecMarx — sebi:IVD-ID7/SVIL/AO/DRK/MD/EAD3/285/51-2011. 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.