sebi:VSS/AO-126/2009
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Facts / Headnote
Penalty of Rs.1,00,000 imposed on the Noticee
Provisions invoked
- s. 15
- s. 10
- s. 15H
- s. 15J
- s. 30
- s. 20
- s. 132
- s. 108
- s. 238
- s. 50
- s. 439
- s. 70
Regulations
- Reg. 7
- Reg. 3
- Reg. 4
- Reg. 4(1)
- Reg. 4(a)
- Reg. 2
- Reg. 4(2)(a)
- Reg. 4(2)(g)
- Reg. 4(2)(b)
Parties
- FMS Securities Ltd.
Holding
The Noticee FMS Securities Ltd. violated regulations 4(1), 4(2)(a), 4(2)(b) and 4(2)(g) of the PFUTP Regulations and Clauses A(1) to A(5) of the Code of Conduct for Stock Brokers by executing synchronized/reversal trades creating artificial volumes in ISL, and was held liable for monetary penalty of Rs.75,000 under section 15HA and Rs.25,000 under section 15HB.
Full text
Page 2 of 23 brokers, sub-brokers and their clients transacted in the shares of ISL in such a manner that led to creation of artificial volumes in the scrip and was designed to create a false market leading to significant price movement in the scrip.
Page 3 of 23 4. It was alleged that one of the entities, viz., FMS Securities Ltd. (hereinafter referred to as “Broker/FMS/Noticee”) had violated the provisions of regulations 4(1), 4(2)(a), 4(2)(b), 4(2)(g) and 4(2)(n) of SEBI (Prohibition of Fraudulent and Unfair Trade Practice relating to Securities Markets) Regulations, 2003 (hereinafter referred to as “PFUTP Regulations”) and Clauses A(1), A(2), A(3), A(4) and A(5) of Code of Conduct for Stock Brokers as specified in Schedule II read with regulation 7 of SEBI (Stock Brokers and Sub Brokers) Regulations, 1992 (hereinafter referred to as “Brokers Regulations”) and therefore, liable for monetary
Page 4 of 23 6. Consequent upon the transfer of Mr. Piyoosh Gupta, the undersigned was appointed as the Adjudicating Officer vide order dated November 19, 2007. SHOW CAUSE NOTICE, HEARING AND REPLY
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Source: SecMarx — sebi:VSS/AO-126/2009. 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.