sebi:SD/AO/12/2010
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Facts / Headnote
Penalty of Rs. 75,000 imposed
Provisions invoked
- s. 15
- s. 15H
- s. 15J
Regulations
- Reg. 7
- Reg. 199
Parties
- M/s Pioneer TCP Stock Brokers Limited
Holding
The Noticee violated Clause A(2) of the Code of Conduct for stock brokers under Regulation 7 of the Broker Regulations by failing to exercise due skill, care and diligence, and is liable for monetary penalty under Section 15HB of the SEBI Act. A penalty of Rs. 75,000 was imposed on M/s Pioneer TCP Stock Brokers Ltd.
Full text
Page 2 of 9 of VLL in a manner which distorted the market equilibrium leading to depression in the scrip price of VLL. 3. M/s Pioneer TCP Stock Brokers Limited, earlier known as TCP Stock Brokers Ltd. (hereinafter referred to as the ‘Noticee’) is registered with SEBI as a Member Broker of Bombay Stock Exchange (BSE) having SEBI Registration No. INB010997832. The findings of the Investigation Report (hereinafter referred to as ‘IR’) reveals that the Noticee allegedly facilitated the trading in the scrip of VLL for its clients which were structured/synchronized as well as reversed in nature by not following due skill, care and diligence in its trading activities contravening the provisions of clause A(2) of the schedule II of the code of conduct as specified for stock brokers under Regulations 7 of the SEBI (Stock Brokers and Sub- Brokers) Regulations 1992 (hereinafter referred to as ‘Broker Regulations’). Therefore, the instant proceeding has been initiated for which the Noticee alleged to be liable for monetary penalty as prescribed under section 15 HB of the Securities and Exchange Board of India Act,1992 (hereinafter referred to as ‘SEBI Act’). APPOINTMENT OF ADJUDICATING OFFICER : 4. Ms. Babita Rayudu was appointed as the Adjudicating Officer vide order of SEBI dated 4th June, 2007 under section 15-I of SEBI Act r/w rule 3 of SEBI (Procedure for holding Inquiry and Imposing Penalty by Adjudicating Officer) Rules,1995 (hereinafter referred to as the ‘Adjudication Rules’) to
Page 3 of 9 SHOW CAUSE NOTICE/REPLY/PERSONAL HEARING : 6. A show cause notice (hereinafter referred to as ‘SCN’) dated January 21, 2008 under Rule 4 of the Adjudication Rules was issued to the Noticee asking it to show the cause as to why an enquiry should not be held against it and penalty be not imposed under Sections 15HB of the SEBI Act for its alleged violations of abovementioned provision of the Broker Regulations.
Page 4 of 9 CODE OF CONDUCT FOR STOCK BROKERS Regulation 7 A. General. (1) … (2) Exercise of due skill and care: A stock-broker shall act with due skill, care and diligence in the conduct of all his business. (3) …
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Source: SecMarx — sebi:SD/AO/12/2010. 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.