sebi:Order/KS/VC/2020-21/8797
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Facts / Headnote
Penalty imposed on Noticee for certain alleged violations; PFUTP fraud charges not established
Provisions invoked
- s. 15
- s. 19
- s. 12(1)
- s. 11
- s. 15H
- s. 15J
- s. 28A
- s. 23J
Regulations
- Reg. 199
- Reg. 2(c)
- Reg. 3
- Reg. 2(1)(c)
- Reg. 15
- Reg. 15(1)(b)
- Reg. 26
- Reg. 11(1)
- Reg. 3(a)
- Reg. 2(1)
- Reg. 27
- Reg. 25(1)
- Reg. 15(l)(b)
- Reg. 200
Parties
- Sanjeev Kapur (Sanjeev Securities)
Holding
The Noticee was held to have violated SEBI Circular SEBI/MIRSD/Cir-06/2004, the Code of Conduct for sub brokers, and Regulations 26(xv) and 26(xvi) of the SBSB Regulations (proprietary trading without permission), and Section 12(1) of the SEBI Act read with Regulation 11(1) of the SBSB Regulations (acting as unregistered sub-broker); however, the alleged violation of PFUTP Regulations was not established. A penalty of Rs. 5,00,000 was imposed under Section 15HB of the SEBI Act.
Full text
Page 2 of 60 (a) SEBI Circular No. SEBI/MIRSD/16/2011 dated August 22, 2011 and Clause A(1) & A(2) of the Code of conduct for sub brokers as stipulated in schedule II read with regulation 15(1)(b) of the SEBI (Stock Brokers and Sub Brokers) Regulations, 1992 (hereinafter, referred to as “SBSB Regulations”); (b) Circular no. SEBI/MIRSD/Cir-06/2004 dated January 13, 2004 and Clause A(1), A(2) and D(3) of the Code of conduct for sub brokers as stipulated in schedule II read with regulation 15 (1)(b) of the SBSB Regulations; (c) Section 12(1) of the SEBI Act read with regulation 11(1) of the SBSB Regulations; (d) Regulations 3(a), 4(1) and 4(2)(a) & (p) of the SEBI (Prohibition of Fraudulent and Unfair Trade Practices) Regulations, 2003 (hereinafter, referred to as “PFUTP Regulations”) and Clause A(1) & A(2) of the Code of conduct for sub brokers as stipulated in schedule II read with Regulation 15 of the SBSB Regulations; and (e) Regulations 26 (xi), (xiv), (xv), (xvi) read with Regulations 27(viii) & (xiv) of SBSB Regulations. APPOINTMENT OF ADJUDICATING OFFICER
Page 3 of 60 Adjudicating Officer to enquire into and adjudge upon the above mentioned alleged violations, and if satisfied that penalty is liable, may impose such
Page 4 of 60 perusal of reply of Sanjeev Kapur and other submissions, following observations and alleged violations emerged in respect of Sanjeev Kapur: (ii) Alleged dealings with client(s) directly without placing buy order / sell order on behalf of clients through the affiliating stock broker: a) It was observed that Sanjeev Kapur, being registered sub broker has handled securities of three clients namely Ashish Shivcharan Khara, Santosh Sumatilal Parekh and Leena Deepak Ugale, and wherein Sanjeev Kapur received shares in off-market mode in his demat account no. IN300280 10039708 from the said clients and sold the shares through his affiliating stock broker. The details of the transactions are as follows: SI Date of Trans action Name of the Scrip Qty Value (Rs.) Received From Sold through affiliated broker Submission/comments of Sanjeev Kapur 1 07-Feb-12 Kei Industries Limited 2000
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Source: SecMarx — sebi:Order/KS/VC/2020-21/8797. 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.