sebi:Order/KS/AA/2019-20/4882
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Facts / Headnote
Penalty of Rs. 1,00,000 imposed ex-parte
Provisions invoked
- s. 15
- s. 15H
- s. 15J
- s. 15F
- s. 28A
Regulations
- Reg. 6
- Reg. 9(b)
Parties
- Sunflower Broking Private Limited
Holding
The Noticee violated Regulations 9(b) and 9(f) of the Broker Regulations read with Clause A (1), (2) & (5) of the Code of Conduct for failure to make requisite disclosures for quarters ending September 2014 and December 2014, and a penalty of Rs. 1,00,000 under Section 15HB of the SEBI Act was imposed ex-parte.
Full text
Page 2 of 9 APPOINTMENT OF ADJUDICATING OFFICER 2. SEBI appointed the undersigned as the Adjudicating Officer vide communique dated May 08, 2018 to inquire into and adjudge under the provisions of Section 15HB of the SEBI Act, the aforesaid violations alleged to have been committed by the Noticee.
Page 3 of 9 (b) As per BSE circular dated November 29, 2013, which came in to effect from quarter ending December 2013, trading members are required to submit breakup of shareholding on behalf of their clients, to the Exchange on a quarterly basis, if such holding is 1% or more of the share capital of a listed company, within 45 days from the end of each quarter. On the same lines, NSE has also issued a circular dated November 29, 2013 mandating the aforesaid disclosure. From the information available on the BSE / NSE websites, the following disclosures were observed to have been filed by the Noticee for the shares held by it on behalf of the client Viking: Table 2 Quarter ending Sunflower BSE NSE Jun-14 NIL 116044 Sep-14 NIL 177052 Dec-14 367044* 367044 Mar-15 NIL 288635 Jun-15 NIL NIL Sep-15 NIL NIL Dec-15 NIL 410973* * Not filed requisite disclosures or have filed incorrect disclosures In this regard, it was observed that the shareholding of Viking, held by the Noticee on behalf of its client was more than the threshold of 1% of the total shareholding of the company, which requires disclosures to be made by the Noticee to the Exchanges, i.e., NSE and BSE. (c) However, from the above tables, it is observed from the disclosures made the Noticee about the number of shares of 20 Microns held by it on behalf of Viking that there are discrepancies in details regarding the shareholding of Viking, held by the Noticee, submitted by the Noticee to the Exchanges and the information p
Page 4 of 9 (d) In view of the same, it was alleged that the Noticee has violated Regulations 9(b) and 9(f) of the Broker Regulations read with Clause A (1), (2) & (5) of Code of Conduct for stock brokers specified under Schedule II of the Broker Regulations.
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Source: SecMarx — sebi:Order/KS/AA/2019-20/4882. 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.