sebi:PKK/AO/129/2011
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Facts / Headnote
Violation established; monetary penalty of Rs.3,00,000 imposed on the Noticee
Provisions invoked
- s. 15
- s. 15H
- s. 15J
Regulations
- Reg. 7
- Reg. 3
- Reg. 4
Holding
The Noticee violated Regulations 4(1) and 4(2)(a), (b) & (e) of the PFUTP Regulations and Regulation 7 read with Clauses A(1)-(5) of the Brokers Code of Conduct, attracting penalty under Sections 15HA and 15HB of the SEBI Act, and a total penalty of Rs.3,00,000 was imposed.
Full text
Page 2 of 11 2 Appointment of Adjudicating Officer: 2. Securities and Exchange Board of India (hereinafter referred to as ‘SEBI’) vide order dated September 06, 2010 appointed the undersigned as the AO under Section 15-I of the Securities and Exchange Board of India Act, 1992 (hereinafter referred to as the ‘SEBI Act’) read with Rule 3 of SEBI (Procedure for Holding Inquiry and Imposing Penalties by Adjudicating Officer) Rules, 1995 (hereinafter referred to as the ‘Adjudication Rules’) to enquire into and adjudge under Sections 15HA and 15HB of the SEBI Act, the Noticee’s alleged violation of Regulations 4 (1) and 4 (2) (a), (b) & (e) of the SEBI (Prohibition of Fraudulent and Unfair Trade Practices) Regulations, 2003 (hereinafter referred to as the ‘PFUTP Regulations’) and Clauses A (1), (2), (3), (4) & (5) of the Code of Conduct for Stock Brokers as specified in Schedule II under Regulation 7 of SEBI (Stock Brokers and Sub-Brokers) Regulations, 1992 (hereinafter referred to as the ‘Brokers Regulations’) in the scrip of SCL.
Page 3 of 11 3 scrip of SCL. Its buy volume was 873394 shares (33.14% of the market buy volume) and its sell volume was 391344 shares (14.85% of the market sell volume) during the period of under investigation. The Noticee had traded in the scrip on behalf of the clients, namely Mahesh Mistry, Harish Kapadia and Dimple Shah.
Page 4 of 11 4 Mistry during the period under investigation, details of which were provided as Annexure 6 to the SCN. 8. The SCN was sent to the Noticee through ‘Registered Post with A/d’ and the same was duly delivered. The Noticee acknowledged the receipt of the SCN vide letter dated January 21, 2011 but did not submit any reply to the SCN. The undersigned decided to conduct an inquiry in this matter and accordingly granted an opportunity of personal hearing to the Noticee on February 15, 2011 vide letter dated February 03, 2011. The Noticee vide letter dated February 15, 2011 informed its intention to file a consent application in this matter.
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Source: SecMarx — sebi:PKK/AO/129/2011. 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.