sebi:M0/158/IVD/01/06
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Facts / Headnote
Warning issued to the sub-broker to be careful not to carry on activities of the nature executed in the scrip of Sawaca Communications Limited.
Provisions invoked
- s. 19
Regulations
- Reg. 13(4)
- Reg. 15
Parties
- M/s. M S Consultancy Services
Holding
The sub-broker, M/s. M S Consultancy Services, was found to have violated the Code of Conduct for Stock Brokers prescribed in Schedule II of Regulation 15 of the SEBI (Stock Brokers and Sub-brokers) Regulations, 1992 by carrying on transactions in the scrip of SCL for Shri Viraj Gandhi, and was warned accordingly.
Full text
30/10/2025, 12:10 about:blank about:blank 2/2
Schedule II of Regulation 15 of SEBI (Stock Brokers and Sub-brokers) Regulations, 1992, by virtue of its carrying out the deals for its ultimate client Shri Viraj Gandhi. I note that the sub-broker was issued a show cause notice on 22.03.05, annexing therewith a copy of the enquiry report, asking him to reply within a period of 15 days thereof. The sub-broker has chosen not to reply to the show cause notice. I am convinced that sufficient opportunity has been accorded to the sub-broker to present its reply, in satisfaction of the principles of natural justice. Now, therefore, I proceed to analyse the issues. I have considered the findings of the enquiry officer in his report dated 10.02.05. I have seen from the investigations that the sub-broker had traded a total of 3,12,900 shares comprising of 1,01,700 shares bought and 2,11,200 shares sold through Acme. The sub-broker had traded for Shri Virag Gandhi, who had contributed to almost 100% of the trades in the scrip of SCL. The value of trades in SCL by Shri Gandhi through the sub-broker constituted about 6.61% of the total value of trades of Shri Gandhi through the sub-broker. Though this does not lead to the conclusion that the sub-broker aided and abetted the price manipulation in the scrip of SCL, but this certainly shows the non-exercise of due skill, care and diligence on the part of the sub-broker in performing its duties and fulfilling its responsibilities as an intermediary in the stock exchange mechanism. Therefore,
Date:31-01-06 WHOLE TIME MEMBER SECURITIES AND EXCHANGE BOARD OF INDIA
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Source: SecMarx — sebi:M0/158/IVD/01/06. 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.