sebi:VSS/AO-47/2009
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Facts / Headnote
Violations established; penalty imposed
Provisions invoked
- s. 15
- s. 15H
- s. 15J
Regulations
- Reg. 7
- Reg. 3
- Reg. 2
- Reg. 4(2)(a)
- Reg. 4(2)(e)
- Reg. 4(2)(b)
- Reg. 4(2)(n)
- Reg. 4(2)(o)
Parties
- Subh Stock Broking Private Limited
Holding
The Noticee, Subh Stock Broking Private Limited, was held to have violated regulations 3, 4(1), 4(2)(a), (b), (e), (g), (n), (o) of PFUTP and clauses A(1), (2), (3), (4) and B(4)(a) of the Code of Conduct for Stock Brokers, and was imposed a total penalty of Rs.3,00,000 under sections 15HA and 15HB of the SEBI Act.
Full text
Page 2 of 18 leading to significant price movement in the scrip which lacked presence of any sort of fundamentals. 2. It was alleged that one of the brokers, Subh Stock Broking Private Limited, Member, CSE (hereinafter referred to as “Noticee”/“SSBPL”) violated the provisions of regulations 3, 4 (1), 4 (2) (a), (b), (e), (g), (n) and (o) of SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Markets) Regulations, 2003 (hereinafter referred to as “PFUTP”) and clauses A (1), (2), (3) and (4) and B (4) (a) of Code of Conduct for Stock Brokers as specified in Schedule II under Regulation 7 of SEBI (Stock Brokers and Sub Brokers) Regulations, 1992 (hereinafter referred to as “Brokers Regulations”).
Page 3 of 18 Noticee under rule 4(1) of the Rules to show cause as to why an 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 18 • We reiterate and submit that we had merely acted upon instructions of our clients and while our buy positions were not substantial enough to cause a rise in the price of the scrip of the Company, our sales which constituted a substantial portion of our trades could not have caused a rise in the price during the period when we have continuously traded.
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Source: SecMarx — sebi:VSS/AO-47/2009. 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.