sebi:Order/KS/AE/2020-21/9320
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Facts / Headnote
Adjudication proceedings initiated vide SCN dated July 26, 2017 disposed of without imposition of any monetary penalty
Provisions invoked
- s. 15
- s. 15H
- s. 15J
Regulations
- Reg. 7
- Reg. 3
- Reg. 9
- Reg. 3(a)
- Reg. 4(2)(g)
Parties
- Crosseas Capital Services Pvt Ltd
Holding
Violations of Regulations 3(a), (b), (c), (d), 4(1), 4(2)(a) and (g) of PFUTP Regulations and Clause A (3), (4) and (5) of Code of Conduct for Stock Brokers by the Noticee were held not established, and the adjudication proceedings were disposed of without any monetary penalty.
Full text
Page 2 of 21 2. It is noted from Investigation Report (IR) that Crosseas Capital Services Pvt Ltd. (hereinafter referred to as “Noticee”) entered into self-trades repeatedly from proprietary account on NSE and BSE which created artificial volume in the scrip of SCTL, leading to false and misleading appearance of trading in the securities market. Based on the findings of the investigation, SEBI initiated Adjudication Proceedings against the Noticee under Section 15 HA of Securities and Exchange Board of India Act, 1992 (hereinafter referred to as "SEBI Act") for the alleged violation of the provisions of Regulations 3(a), (b), (c), (d), 4(1), 4(2)(a) and (g) of SEBI (Prohibition of Fraudulent and Unfair Trade Practices) Regulations, 2003 (hereinafter referred to as "PFUTP Regulations") and under Section 15HB of SEBI Act for the alleged violation of Clause A (3), (4) and (5) of the Code of Conduct for Stock Brokers as specified under Schedule II read with Regulation 7 read with Regulation 9 of SEBI (Stock Brokers) Regulations, 1992. (hereinafter referred to as "Brokers Regulations"). APPOINTMENT OF ADJUDICATING OFFICER
Page 3 of 21 SHOW CAUSE NOTICE, REPLY AND PERSONAL HEARING 4. Show Cause Notice no. SEBI/HO/EAD/EAD-6/SILPI/AK/SP/OW/P/2017/17501/1 dated July 26, 2017 (hereinafter referred to as “SCN”) was issued to the Noticee under rule 4 of the Rules to show-cause as to why an inquiry should not be initiated against the Noticee and penalty be not imposed upon it for the aforementioned alleged violations.
Page 4 of 21 trading on NSE and BSE as referred to in Tables above, created artificial volume in the scrip of SCTL and therefore alleged to have violated Clause A (3), (4) and (5) of the Code of Conduct for Stock Brokers as specified under Schedule II read with Regulation 7 read with Regulation 9 of Broker Regulations.
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Source: SecMarx — sebi:Order/KS/AE/2020-21/9320. 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.