sebi:WTM/39/12/2005/IVD

SEBI · SEBI · Madhukar, Whole Time Member

This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.

Facts / Headnote

Minor penalty of warning imposed on noticee with direction to be more diligent

Provisions invoked

• s. 19

Regulations

• Reg. 7
• Reg. 4
• Reg. 13
• Reg. 5
• Reg. 2

Parties

• M/s. Shilpa Stock Broker Pvt. Ltd

Holding

The Whole Time Member agreed with the Enquiry Officer and imposed a minor penalty of warning on M/s. Shilpa Stock Broker Pvt. Ltd for violation of Clause A(2) of the Code of Conduct, directing it to be more diligent in future compliance.

Full text

Home » Enforcement » Orders » Orders of Chairman/Members Enforcement Enforcement▼ ORDER Under regulation 13 (4) of Securities and Exchange Board of India (Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002 against M/s. Shilpa Stock Broker Pvt. Ltd, Member, INB 011057438 The Stock Exchange, Mumbai, in the matter of M/s. Eonour Software Ltd 1.0 Background 1.1 In January 1996, M/s. Eonour Software Limited (hereinafter referred to as “ESL”) had come out with a public issue of 12, 50, 000 shares of R each at a premium of Rs.20/- per share aggregating to Rs.375 lac. Shares of ESL were listed at The Stock Exchange, Mumbai (here referred to as “BSE”), Madras Stock Exchange, Madhya Pradesh Stock Exchange, and Ahmedabad Stock Exchange. 1.2 The scrip of ESL was listed at BSE on 13 March 2000 and the first trade was reported only on 12 June 2000 at a price of Rs.520/- which w to Rs.634.75 by 7 July 2000. A total of 2, 22, 600 shares were traded at BSE during 1 December 1999 and 31 July 2000. The ma quantity traded on an exchange on a particular day during the said period was on 22 June 2000 with number of shares traded being 1 shares. 1.3 Securities and Exchange Board of India (hereinafter referred to as “SEBI”) had conducted an investigation into the trading of the scrip of ESL. 1.4 Brokers mentioned in following Table-1 were the top ten brokers in terms of gross quantity traded during the period June 2000 to December 2 BSE. These brokers were selec

1.1 In January 1996, M/s. Eonour Software Limited (hereinafter referred to as “ESL”) had come out with a public issue of 12, 50, 000 shares of Rs. 10/- each at a premium of Rs.20/- per share aggregating to Rs.375 lac. Shares of ESL were listed at The Stock Exchange, Mumbai (hereinafter referred to as “BSE”), Madras Stock Exchange, Madhya Pradesh Stock Exchange, and Ahmedabad Stock Exchange. 1.2 The scrip of ESL was listed at BSE on 13th March 2000 and the first trade was reported only on 12th June 2000 at a price of Rs.520/- which went up to Rs. 634.75 by 7th July 2000. A total of 2, 22, 600 shares were traded at BSE during 1st December 1999 and 31st July 2000. The maximum quantity traded on an exchange on a particular day during the said period was on 22nd June 2000 with number of shares traded being 11, 700 shares. 1.3 Securities and Exchange Board of India (hereinafter referred to as “SEBI”) had conducted an investigation into the trading of the scrip of ESL. 1.4 Brokers mentioned in following Table-1 were the top ten brokers in terms of gross quantity traded during the period June 2000 to December 2000 at BSE. These brokers were selected on the basis of their Gross Purchases, Gross sales and Gross position. Table -1 Name of Broker Purchases % of Total Sales % of Total Gross Shilpa

5.0 Order 5.1 Therefore I agree with recommendation of enquiry officer and in exercise of powers conferred upon me in terms of Section 19 of the Securitie Exchange Board of India Act, 1992 read with regulation 13 (4) of Securities and Exchange Board of India (Procedure for holding Enqu Enquiry Officer and imposing penalty) Regulations, 2002, I hereby impose a minor penalty of warning on M/s. Shilpa Stock Broker Pvt. Ltd. it to be more diligent in complying with the Securities and Exchange Board of India Act, Rules and Regulations framed there under. I further M/s. Shilpa Stock Broker Pvt. Ltd to note that any instances of violations or non-compliance of the Act, Rules and Regulations in future s dealt with more stringently. Place: Mumbai Madhukar Date: 27 December 2005 Whole Time Member Securities and Exchange Board of India

Source: SecMarx — sebi:WTM/39/12/2005/IVD. 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.