sebi:VSS/AO-186/2009
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Facts / Headnote
Violations established; penalty of Rs.1,00,000 imposed (Rs.75,000 under section 15HA and Rs.25,000 under section 15HB of SEBI Act)
Provisions invoked
- s. 15
- s. 15H
- s. 15J
Regulations
- Reg. 7
- Reg. 4(a)
- Reg. 3
- Reg. 4(1)
- Reg. 15
- Reg. 2
- Reg. 4(2)(a)
- Reg. 4(2)(g)
- Reg. 4(2)(b)
- Reg. 23
Parties
- FMS Securities Ltd.
Holding
The Noticee (FMS Securities Ltd.) was held to have 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 under the Brokers Regulations by executing synchronized/reversal trades in KRBL shares. A total penalty of Rs.1,00,000 was imposed (Rs.75,000 under section 15HA and Rs.25,000 under section 15HB of the SEBI Act).
Full text
Page 2 of 20 brokers, sub-brokers and their clients transacted in the shares of KRBL 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 20 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”), 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 and Clause A(1) & (2) of Code of Conduct for sub- brokers under Schedule II of Regulation 15 of SEBI (Stock Brokers and Sub-brokers) Regulations, 1992. (hereinafter referred to as “Brokers Regulations”) and therefore, liable for monetary penalty under sections 15HA and 15HB of Securities and Exchange Board of India Act, 1992 (hereinafter referred to as “SEBI Act”).
Page 4 of 20 to as ‘Rules’) to inquire into and adjudge the aforesaid alleged violations committed by the Noticee. 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-186/2009. 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.