sebi:MO/36/IVD/07/04
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Facts / Headnote
Penalty recommended by the Enquiry Officer imposed; certificate of registration suspension of 4 months upheld as adequate
Provisions invoked
- s. 11
- s. 19
- s. 13
- s. 18
Regulations
- Reg. 4
- Reg. 7
- Reg. 13(4)
- Reg. 13
- Reg. 4(a)
- Reg. 4(b)
- Reg. 5(1)
- Reg. 6(1)
Parties
- Amitabh Sonthalia, Member, Calcutta Stock Exchange Association Limited (SEBI Reg. No. INB030966517)
Holding
The broker violated SEBI's circular dated 14.09.1999 by entering into off-market transactions outside the price and order matching mechanism of the Calcutta Stock Exchange, and also violated Regulation 4(a) and (b) of the FUTP Regulations and the Code of Conduct for Stock Brokers. The penalty recommended by the Enquiry Officer (4-month suspension of registration certificate) was imposed as adequate.
Full text
Home » Enforcement » Orders » Orders of Chairman/Members Enforcement Enforcement▼ ORDER UNDER REGULATION 13(4) OF THE SEBI (PROCEDURE FOR HOLDING INQUIRY BY ENQUIRY OFFICER AND IMPOSING PENALTIES) REGULATIONS, 2002.
SHOW CAUSE NOTICE AND HEARING He argued further that "In fact, the adverse finding seems to be that they did not affect the market or the prices and would have impacted prices, had they been executed on the market. Consequently, they did not affect prices in any manner. Since, they were admittedly off market transactions they could never have created any appearance of trading on the market. There was no allegation that any person was induced to buy or sell any scrip. On the contrary, the grievance appears to be that the others (on the exchange) were not induced or affected by the transactions and thereby lost a purported opportunity. Hence, none of the ingredients of Regulations 4(a) and (b) were met."
CONSIDERATION OF ISSUES 11. Whether the said broker had entered into transactions that were in violation of the directions contained in circular dated 14.09.99 and consequently, the bye laws of CSE?
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Source: SecMarx — sebi:MO/36/IVD/07/04. 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.