sebi:PKB/AO-12/2009
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Facts / Headnote
Penalty of Rs. 1,00,000 imposed on Dimensional Securities Pvt. Ltd. for thrice contravening SEBI order dated January 17, 2007
Provisions invoked
- s. 11B
- s. 11(4)
- s. 15
- s. 15H
- s. 15J
Parties
- Dimensional Securities Pvt. Ltd.
Holding
The Adjudicating Officer held that Dimensional Securities Pvt. Ltd. thrice contravened SEBI order No. WTM/GA/122/ISD/01/07 dated January 17, 2007 and imposed a monetary penalty of Rs. 1,00,000 under Section 15HB of the SEBI Act, 1992.
Full text
Page 2 of 5 3. In response to the SCN, the noticee vide letter dated July 04, 2008, submitted that pursuant to the said order it accordingly locked the scrip on the main trading terminals of BSE/NSE and on CTCL. It had also informed all its branches and terminals of the order so as to ensure strict compliance of the order. However due to a software update carried out on CTCL server the lock got erased and a trade of 100 shares on NSE was done on February 7, 2007. In the second instance the lock was entered for NSE only in the CTCL server erroneously. Accordingly a sale trade on 15 shares and a buy trade of 1000 shares was done on February 09, 2007 on BSE. The noticee further submitted that the trades were done due to genuine human error and there was no intention to contravene the SEBI
Page 3 of 5 and bought 1000 shares of NCL on behalf of its client Sangeeta Pamecha on February 19, 2007 through its registered sub-broker Suresh Prasad Singh. However, the noticee vide its reply dated July 04, 2008, submitted that a sale trade on 15 shares and a buy trade of 1000 shares was done on February 09, 2007. It is noted that the noticee has given two different dates (i.e. February 09, 2007 and February 19, 2007) for trade of 1000 shares in two different letters. Further, referring to same set of trades BSE vide letter dated February 21, 2007 has observed the date of trade as February 19, 2007. As BSE has corroborated one of the two dates of trade given by the noticee, I am considering that the trade had happened on February 19, 2007 and not on February 09, 2007.
Page 4 of 5 February 24, 2009, I am of the opinion that the alleged contravention of SEBI order under Section 11B and Section 11(4) of the SEBI Act, 1992 as specified in the SCN dated September June 19, 2008, stands established and the intention of the noticee is of no relevance. Further, these repeated contraventions are not result of genuine human error but recklessness and carelessness on the part of noticee. Further more, I am convinced that it is a fit case to impose monetary penalty u/s 15HB of the SEBI Act, 1992.
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Source: SecMarx — sebi:PKB/AO-12/2009. 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.