sebi:PB/AO-116/2010
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Facts / Headnote
Violations not established; matter disposed of with no penalty
Provisions invoked
- s. 15
- s. 15J
Regulations
- Reg. 7
- Reg. 3
- Reg. 4
- Reg. 4(1)
- Reg. 4(2)(a)
- Reg. 4(2)(e)
- Reg. 4(2)(g)
- Reg. 4(2)(b)
Parties
- Ruchiraj Share and Stock Brokers Private Limited
Holding
The alleged violations of regulations 4(1), 4(2)(a), (b), (e) and (g) of the PFUTP Regulations and clauses A(1) to (5) of the Brokers Code of Conduct by the Noticee as specified in the SCN dated July 28, 2008 do not stand established and the matter is accordingly disposed of without penalty.
Full text
Page 2 of 15 manner that led to creation of artificial volumes in the scrip and was designed to create a false market leading to significant price movement in the scrip.
Page 3 of 15 5. Consequent upon the transfer of Mr. V.S. Sundaresan, I have been appointed as the Adjudicating Officer vide order dated December 24,
Page 4 of 15 of investigation and, therefore, these trades can in no way be attributed to the influencing price in the scrip of IPL. We further submit that assuming that the trades were cross deals, we were not aware of the same. • We submit that simply because we have placed 81 buy orders on behalf our clients on 8 days does not and cannot by any stretch of imagination make the trades manipulative. Further, when a buy order is entered in the automated trading mechanism of Stock Exchange, the order can be picked by anyone. The trading mechanism is so fast that the orders get converted into trades in a fraction of second. In the automated price and order matching mechanism of the BSE trading system, it is impossible for a stock broker to know the counter party of the trade. • We believe that buy and sell orders, which have been inputted is absolutely normal, reasonable and permissible. • It is submitted that SEBI has failed to provide any single instance wherein the buy and sell orders were cross deals and in what manner or extent were they cross deals. Moreover, SEBI has not provided any credible evidence so as to show that how the alleged cross deals, if any, executed by us has contributed to variation in prices. • It is impossible, impracticable and unfeasible for a broker to detect and perceive the intentions of a client. • It is submitted that the investigation officer has erred in coming to a finding that we were placing “large quantities of orders” on behalf of our clie
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Source: SecMarx — sebi:PB/AO-116/2010. 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.