sebi:Order/VV/AS/2022-23/16254
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Facts / Headnote
Violation established; monetary penalty imposed as deterrent (amount not specified in excerpt)
Provisions invoked
- s. 15
- s. 19
- s. 15H
- s. 16
- s. 15I
- s. 15J
- s. 28A
- s. 65B(4)
- s. 65B
Regulations
- Reg. 199
- Reg. 3
- Reg. 4
- Reg. 9
- Reg. 9(f)
- Reg. 4(1)
- Reg. 200
- Reg. 26
- Reg. 3(b)
Parties
- PACE Stock Broking Services Pvt. Ltd.
Holding
The Noticee PACE Stock Broking Services Pvt. Ltd. was found to have violated Clause A(2) of the Code of Conduct under Schedule II read with Regulation 9(f) of the Stock Broker Regulations, 1992 and Regulation 4(1) of the PFUTP Regulations, 2003, by repeatedly connecting to the secondary server without valid reasons, contrary to NSE Colocation guidelines. A monetary penalty was imposed as a deterrent.
Full text
Adjudication Order in respect of PACE Stock Broking Services Pvt. Ltd. Page 2 of 37 In the matter of NSE Co-Location 2. SEBI initiated adjudication proceedings to inquire into and adjudge under a) Sections 15HA of the Securities and Exchange Board of India Act, 1992 (hereinafter referred to as the “SEBI Act”), for the violation of regulations 3(b), 3(c), 3(d) & 4(1) of SEBI Securities and Exchange Board of India (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 2003 (hereinafter referred to as “PFUTP Regulations 2003”) read with Sections 12A(a), 12A(b) & 12A(c) of the SEBI Act and b) Section 15HB of the SEBI Act, read with Regulations 26(xvi) and 26(xx) of SEBI (Stock Brokers & Sub Brokers) Regulations, 1992 (hereinafter referred to as “Stock Broker Regulations 1992”) for the violation of provisions of Clause 2(a) of Chapter V of NSE Byelaws including NSE Colocation guidelines, Clause A(2) and A(5) of Code of conduct specified under schedule II read with Regulation 9(f) of the Broker Regulations.
Adjudication Order in respect of PACE Stock Broking Services Pvt. Ltd. Page 3 of 37 In the matter of NSE Co-Location C. SHOW CAUSE NOTICE, REPLY AND HEARING 4. Show Cause Notice No. EAD-6/BJD/AA/19714/2020 dated November 13, 2020 (hereinafter be referred to as the “SCN”) was duly served upon Noticee under Rule 4(1) of the Adjudication Rules to show cause as to why an inquiry should not be held and penalty be not imposed against it under the provisions under sections 15HA and section 15HB of SEBI Act for the aforesaid violation.
Adjudication Order in respect of PACE Stock Broking Services Pvt. Ltd. Page 4 of 37 In the matter of NSE Co-Location September 12, 2013, wherein it connected to secondary server without connecting to primary server at all.
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