sebi:Order/VV/AK/2022-23/16120

SEBI · SEBI · 2018-01-18 · Vijayant Kumar Verma, Adjudicating Officer

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Facts / Headnote

Disposed of without imposition of penalty; allegations not established

Provisions invoked

• s. 15
• s. 19
• s. 15H
• s. 15I
• s. 15J

Regulations

• Reg. 7
• Reg. 199
• Reg. 3
• Reg. 18
• Reg. 3(a)

Parties

• SIC Stock and Services Pvt Ltd

Holding

The Adjudicating Officer held that the allegations of self-trades, order book manipulation, and PFUTP violations against SIC Stock and Services Pvt Ltd were not established, and the proceeding was disposed of without imposition of any penalty.

Full text

Adjudication Order w.r.t. SIC Stock and Services Pvt Ltd Page 2 of 22 In the matter of Mefcom Agro Industries Limited 3. In view of all of the above, it was alleged that the Noticee violated the provisions of Regulation 3(a), 3(b), 3(c), 3(d), 4(1), 4(2)(a), 4(2)(e) & 4(2)(g) of SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003 (hereinafter referred to as the “PFUTP Regulations, 2003”). In addition to this Noticee failed to adhere clause A(1), (3), (4), (5) of code of conduct for stock brokers as specified under schedule II read with regulation 7 of “Stock Broker Regulations 1992” for being broker and counterparty broker to self-trade of Purshottam Khandelwal and Shilpi Modi (hereinafter collectively referred to as “Clients”), for manipulating the price of scrip by trading at price higher than LTP by trading behalf of Clients and for trading at a rate higher than LTP in substantial number of first trades on behalf of Purshottam Khandelwal (hereinafter referred to as “PK”).

Adjudication Order w.r.t. SIC Stock and Services Pvt Ltd Page 3 of 22 In the matter of Mefcom Agro Industries Limited should not be initiated and penalty be not imposed under section 15HA and 15HB of the SEBI Act, 1992 for the alleged violations specified in the SCN. The aforesaid SCN was duly served upon Noticee. Accordingly, Hearing Notice dated May 20, 2019, in terms of 4(3) of Adjudication Rules, issued to Noticee and given an opportunity of hearing to the Noticee on June 21, 2019 which postpone to June 26, 2019 vide letter dated June 11, 2019. Vide letter dated June 17, 2019, Noticee filed reply and requested for adjournment of hearing and along with the additional time till the disposal of parallel proceeding before Whole Time Member, SEBI (hereinafter referred to as “WTM”). Vide letter dated June 24, 2019 it had been informed to Noticee, that the request for “additional time till the disposal of parallel proceedings before WTM would be completed” cannot be acceded to. Threafter, vide letter dated July 01, 2019, Noticee requested for inspection of documents viz, complete market log and order log of both stock exchange, documentary evidence having financial transaction with Avisha Trade log and order log by alleged clients, details of off market transaction alleged to be executed date and time wise details of alleged LTP trade, execution of first trade, date wise, time wise details of alleged first trade Copy of statement recorded wherein clients alleged that trades in t

Adjudication Order w.r.t. SIC Stock and Services Pvt Ltd Page 4 of 22 In the matter of Mefcom Agro Industries Limited authorized representative of Noticee appeared before me through video conference and made submissions on the lines of the reply dated November 19, 2021 of the Noticee in this matter. The hearing has been concluded. The AR also sought time to file a post hearing submission, which was acceded to. Accordingly, Noticee filed its post hearing written submission vide letter dated March 03, 2022.

Source: SecMarx — sebi:Order/VV/AK/2022-23/16120. 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.