sebi:SD/AO/135/2009
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Facts / Headnote
Penalty of Rs. 75,000 imposed on the Noticee under Section 15HB of the SEBI Act
Provisions invoked
- s. 15
- s. 15H
- s. 15J
Regulations
- Reg. 7
Parties
- M/s DPS Shares & Securities Pvt. Ltd.
Holding
The Noticee violated Clause A(2) of the Code of Conduct for Stock Brokers by failing to act with due skill, care and diligence while trading in the scrip of FTEL and is liable to monetary penalty under Section 15HB of the SEBI Act.
Full text
Page 2 of 12 Ramesh Jain, Sicorp Finlease Limited, Ravi Panchal, Jignesh Shah and Prasad Tandel. 2. The investigation report (hereinafter referred to as ‘IR’) revealed that the scrip of FTEL was thinly traded prior to the investigation period. Further various entities such as promoters, some brokers and connected clients were allegedly found to have been involved in the activities of manipulation of the scrip price of FTEL in a fraudulent manner. These entities were alleged of fraudulent trading by frequent dematerialization and rematerialization of the said scrip. The activities of these entities allegedly facilitated the creation of artificial volumes and influenced the scrip price of FTEL in the securities market.
Page 3 of 12 the SEBI Act, the alleged violations of the abovementioned provisions of the Broker Regulations committed by the Noticee. SHOW CAUSE NOTICE/REPLY/PERSONAL HEARING :
Page 4 of 12 8. In this regard, I find that the Noticee has tried to mislead and misguide the undersigned regarding its willingness to file consent application. The undersigned has fixed the personal hearing on June 15, 2009 on which Noticee had expressed its desire to avail consent proceedings and specifically time has been given upto June 30, 2009 to file consent application. However, till date the Noticee has not made any consent application and five months time was sufficient enough to file the consent application. However, the Noticee neither filed any consent application nor made any correspondence in this respect to the undersigned. The said gesture of the Noticee clearly indicates either to avoid or to delay the said adjudication proceedings. According to me this gesture is admittedly unethical, disturbing and never expected from a responsible market intermediary. Therefore, the matter is now being proceeded on the basis of the material available on record. CONSIDERATION OF ISSUES AND FINDINGS :
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Source: SecMarx — sebi:SD/AO/135/2009. 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.