sebi:VSS/AO-83/2009
Facts / Headnote
Violation not established; matter disposed of with no penalty
Provisions invoked
- s. 15
- s. 15H
Regulations relied on
- SEBI (Stock Brokers) Regulations, 1992 — 7
Holding
The alleged violation of clause A (2) of the Code of Conduct under regulation 7 of Schedule II of the Brokers Regulation was held not established. The matter was accordingly disposed of with no penalty imposed.
Full text
Page 2 of 4 15HB of Securities and Exchange Board of India Act, 1992 (hereinafter referred to as “SEBI Act”). APPOINTMENT OF ADJUDICATING OFFICER
Page 3 of 4 was rejected and gone in for auction/close out. In this process, she had incurred a loss of Rs.4,400/-. • Bombay Stock Exchange (hereinafter referred to as “BSE”) vide notice dated July 31, 2003 had informed the members of the exchange that trading in the scrip of RSL was taking place both in the fully paid up share of Rs.10/- each (scrip code 500362) and partly paid up share of Re.1/- each (scrip code 890093). The notice also indicated the price at which the shares were traded as on July 30, 2003. • The Noticee, vide notice dated August 1, 2003 addressed to all branch managers and sub brokers of the Noticee, had informed the contents of the aforesaid notice of BSE and had also advised them to inform all the clients and exercise utmost care before placing the orders in the scrip of RSL. The Noticee had, also through the said notice, instructed them to display the said communication on the notice board. The subject of the said notice had clearly specified ‘Cautious trading in RSL’. • The complainant, in her letter addressed to the Noticee, has stated, inter alia, as under: QUOTE Though I was informed by my/your Sub-Broker regarding the existence of the fully paid and partly paid shares of Recron Synthetics Ltd at the time of placing the order but with an assumption to give benefit to the buyer I have delivered the fully paid shares.
Page 4 of 4 6. In view of the aforesaid findings, I am of the view that the Noticee had exercised due skill, care and diligence in dealing with its clients and had, in fact, cautioned them regarding the trading of both fully paid up and partly paid up shares of RSL. The complainant had also confirmed that she was aware of this fact and that she had no grievance against the Noticee.
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