sebi:SRP/DL/AO:103/2010
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Facts / Headnote
Noticee held guilty; penalty imposed
Provisions invoked
- s. 15
- s. 15H
- s. 15J
Regulations
- Reg. 3
- Reg. 2
- Reg. 3(a)
- Reg. 15(1)
- Reg. 15(1)(b)
Parties
- Share Aids
- Gunvantbhai Zaladi
Holding
The Noticee was held guilty of violating regulations 3(a), 4(1), 4(2)(a) and (g) of the PFUTP Regulations and regulation 15(1)(b) read with clauses A(1), D(1), D(4) and D(5) of the Code of Conduct for sub-brokers, and a total monetary penalty of Rs. 2,50,000 was imposed under sections 15HA and 15HB of the SEBI Act.
Full text
Page 2 of 19 3. In view of the above, it was alleged that the Noticee, has violated the provisions of regulations 3(a), 4(1), 4(2) (a) and (g) of the SEBI (Prohibition of Fraudulent and Unfair Trade Practice relating to Securities Markets) Regulations, 2003 (hereinafter referred to as “PFUTP Regulations”) and/or the provisions of regulation 15(1)(b) read with clauses A(1), D(1), D(4) and D(5) of the Code of Conduct for sub-brokers specified under schedule II of the SEBI (Stock Brokers and Sub-Brokers) Regulations, 1992 (hereinafter referred to as ‘the Broker Regulations’). The alleged violation/contravention of the provisions of the PFUTP and the Broker Regulations, if established, make the Noticee liable for penalty under section 15HA and 15HB of the Securities and Exchange Board of India Act, 1992 (hereinafter referred to as ‘SEBI Act’). APPOINTMENT OF ADJUDICATING OFFICER
Page 3 of 19 7. The hearing on July 20, 2010 was attended by Mr. Gunvantbhai Zaladi, Proprietor of the Noticee (hereinafter referred to as “the Proprietor”). The Noticee, submitted that reply to the SCN has already been forwarded vide letter dated March 22, 2010 and arranged for a soft copy of the said reply through e-mail on the date of hearing i.e. July 20, 2010.
Page 4 of 19 CONSIDERATION OF ISSUES AND FINDINGS 10. I have carefully examined the allegations against the Noticee and the documents available on record. The issues that arise for consideration in the present case are: a) Whether the Noticee has indulged in synchronized trades and reversal of trades and thereby violated regulations 3(a), 4(1), 4(2) (a) and (g) of the PFUTP Regulations and the clauses A (1), D (1), D (4) and D (5) of the of the Code of Conduct for sub-brokers as specified under schedule II read with regulation 15(1) (b) of the Brokers Regulations? b) Does the contravention/violation of the aforesaid provisions of the PFUTP Regulations and the Broker Regulations, if any, committed by the Noticee attract monetary penalty under section 15HA and 15HB of the SEBI Act? c) If so, what would be the monetary penalty that can be imposed taking into consideration the factors mentioned in section 15 J of the SEBI Act?
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Source: SecMarx — sebi:SRP/DL/AO:103/2010. 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.