sebi:Order/KS/AE/2020-21/9319
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Facts / Headnote
The adjudication proceedings against Adroit Financial Services Private Limited were disposed of without imposition of any monetary penalty.
Provisions invoked
- s. 15
- s. 15H
- s. 15J
- s. 12A
Regulations
- Reg. 7
- Reg. 2(c)
- Reg. 3
- Reg. 27
- Reg. 3(a)
- Reg. 9
Parties
- Adroit Financial Services Private Limited
Holding
The AO found no basis to draw an adverse inference against the Noticee for failure to exercise due skill and care because it was not established that AKG had repeatedly entered into self-trades to create artificial volume. The proceedings were disposed of without monetary penalty.
Full text
Page 2 of 22 created artificial volume in the scrip of SCTL, leading to false and misleading appearance of trading in the securities market. The details of the self-trades on BSE as per IR are given below Entity Name Broker (Buy & Sell Side) Mkt Volume (No. Of Shares) Traded Volume (BUY) (No. of Shares) Traded Volume (SELL) (No. of Shares) Self traded Qty. (No. of Shares) No. of trades
Page 3 of 22 vide Communique dated April 26, 2018 the undersigned has been appointed as the Adjudicating Officer in the instant matter. SHOW CAUSE NOTICE, REPLY AND PERSONAL HEARING
Page 4 of 22 5. Before proceeding further with the specific submissions on the merits of the Notice, Our Clients would like to provide their brief background and certain facts relating to AKG: (a)Our Client, Adroit Financial Services Private Limited, is an entity duly constituted under the Companies Act, 1956 and has been registered with Securities and Exchange Board of India as stock broker with National Stock Exchange of India Ltd. having registration no. INB 230853830 and with BSE Ltd. having registration no. INB011228336. Our Client has been been engaged in the business of stock broking activities for last 20 years and have an impeccable track record of securities laws compliance till date. (b)AKG had opened its account with Our Client in the year 2002 and have since their registration been engaged in the business of buying, selling and dealing in stocks & commodities. (c)They are engaged into the business of jobbing/arbitrage in the securities market. Their arbitragers and jobbers regularly visit our office and undertake through our dealers jobbing transactions looking into the opportunities available to them. At this stage it is pertinent to mention that their jobbers regularly carry out transactions of more than Rs. 100 Crores in cash market on any given day in multiple scrips depending on the market conditions and availability of arbitrage conditions. OUR CLIENT'S PARA WISE REPLY TO ALLEGATIONS LEVELLED IN THE NOTICE ARE AS UNDER;
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Source: SecMarx — sebi:Order/KS/AE/2020-21/9319. 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.