sebi:Order/GR/PU/2023-24/26041
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Facts / Headnote
Noticee held to have violated Schedule II A(2) of Code of Conduct for Stock Brokers r/w Regulation 9(f) of Broker Regulations and held liable for monetary penalty under Section 15HB of SEBI Act, 1992
Provisions invoked
- s. 15
- s. 15H
- s. 15J
- s. 11C
- s. 15F
- s. 28A
Regulations
- Reg. 3
- Reg. 9
- Reg. 9(f)
- Reg. 2(1)(c)
- Reg. 2(1)
- Reg. 2
- Reg. 2(1)(c)(2)
- Reg. 2(1)(c)(8)
Parties
- Alankit Imaginations Ltd (Formerly known as: Alankit Assignments Ltd)
Holding
The Noticee, as broker, failed to exercise due skill, care and diligence in conduct of its business and facilitated 402 non-genuine reversal trades of its clients in illiquid stock options at BSE, creating false/misleading appearance of trading, in violation of Schedule II A(2) r/w Regulation 9(f), and is liable for monetary penalty under Section 15HB of SEBI Act.
Full text
Adjudication Order in respect of Alankit Imaginations Ltd in the matter of Trading Members in ISO at BSE Page 2 of 25 manner, till further directions. Confirmatory orders dated July 30, 2016, August 22, 2016 and August 24, 2016 ("Confirmatory orders") in this regard, were passed by SEBI confirming the directions issued vide aforementioned Interim order against all 59 persons/entities.
Adjudication Order in respect of Alankit Imaginations Ltd in the matter of Trading Members in ISO at BSE Page 3 of 25 observed that a total of 2,91,744 non-genuine trades were executed by 14,720 entities through 192 Brokers that resulted in reversal trades during the I.P. Trade data pertaining to these 2,91,744 non-genuine trades formed the source data for the case against brokers.
Adjudication Order in respect of Alankit Imaginations Ltd in the matter of Trading Members in ISO at BSE Page 4 of 25 11. The said SCN was delivered to the Noticee via SPAD and also vide email dated July 06, 2022.The proof of service is on record. In response, the Noticee vide its letter dated July 12, 2022 communicated the details of its Authorized Representative(AR). In the interest of natural justice and in order to conduct an inquiry in terms of Rule 4(3) of the Adjudication Rules, an opportunity of personal hearing was granted on July 25, 2022 vide Hearing Notice served through email dated July 14, 2022 with a further advise to file reply on or before July 22, 2023. In response to this, the Noticee vide letter dated July 15, 2022 sought for inspection of the documents relied upon in the matter in respect of the Noticee. However, from the material available on record, it is conspicuous that all the relevant documents have already been provided to the Noticee along with the SCN and during the course of proceedings.
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Source: SecMarx — sebi:Order/GR/PU/2023-24/26041. 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.