sebi:VSS/AO-138/2009
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Facts / Headnote
Alleged violations not established; matter disposed of without penalty
Provisions invoked
- s. 15
- s. 15J
Regulations
- Reg. 7
- Reg. 3
Parties
- I C Baid & Co
Holding
The alleged violations of PFUTP Regulations and Brokers Regulations by I C Baid & Co. in the scrip of Shree Nidhi Trading Company Limited were held not established, and the proceedings were accordingly disposed of without penalty.
Full text
Page 2 of 11 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 which lacked presence of any sort of fundamentals.
Page 3 of 11 inquiry should not be held against the Noticee and penalty be not imposed on the Noticee under sections 15HA and 15 HB of SEBI Act for the alleged violation specified in the said SCN.
Page 4 of 11 in the ordinary course of business. The trade executed by us in the scrip of SNTL during the investigation period were executed in accordance with the instructions of our clients as to the price, quantity and time. It is submitted we had not executed any proprietary trades in the scrip of SNTL. It may be highlighted that at the relevant time we had executed trades in the scrip of SNTL on behalf of more than 50 clients. All the said 50 clients used to trade regularly through us in various scrips. Never in the past any of the said 50 clients had defaulted in meeting their payment / delivery obligations. • It is submitted that we have no link no link / connection / nexus with the other brokers as mentioned in the said para who have traded in the scrip of SNTL during the Investigation Period. It is reiterated that (the trades carried out by us were in conformity to the directions of our clients as to the price and quantity. We share no relationship with our clients who carried out trade in the scrip of SNTL during the Investigation Period through us, save and except that of a broker and client. It is submitted that, for the rise and fall in the price of the scrip of SNTL neither we nor our clients can be held responsible. The volume of the scrip traded by us on behalf of our clients constituted mere 12 % of the total volume traded in the market- It is denied that we were trading on behalf of our client with the intention of creating a large volume or to influence the
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Source: SecMarx — sebi:VSS/AO-138/2009. 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.