sebi:WTM/AB/EFD-1/DRA-IV/32/2019-20
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Facts / Headnote
SCN-2 dated September 19, 2018 disposed of; no warning issued to the Noticee
Regulations
- Reg. 7
- Reg. 6
- Reg. 4(b)
- Reg. 28
- Reg. 27
- Reg. 28(1)
Parties
- SPS Shares Brokers Pvt. Ltd.
Holding
The Show Cause Notice (SCN-2) recommending a warning to SPS Shares Brokers Pvt. Ltd. for inconsistent practices in terming its director's trades as its own trades is disposed of without issuing any warning. The Noticee was not held guilty of violating Regulation 4(b), 4(c) and 4(d) of PFUTP Regulations, 1995 read with the Code of Conduct under Schedule II to Regulation 7 of the Stock Broker Regulations, 1992.
Full text
Order in the matter of enquiry proceedings against SPS Shares Brokers Pvt. Ltd. Page 2 of 7 Noticee under SEBI (Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002 (since rescinded) (hereinafter referred to as “Enquiry Regulations”) for finding out the possible violations of the provisions of SEBI Act, 1992, PFUTP Regulations, 1995, Stock Broker Regulations, 1992 and SCRR by the Noticee. A show cause notice dated June 14, 2007 (hereinafter referred to as “SCN-1”) was issued by the Enquiry Officer to Noticee, under Regulation 6 of the Enquiry Regulations. The allegations levelled against the Noticee in the SCN-1 are as under: “
Order in the matter of enquiry proceedings against SPS Shares Brokers Pvt. Ltd. Page 3 of 7 5. It is alleged in the investigation report, that you were involved in matched trades with Tropical Securities and Investment Pvt. Ltd. in the month of June. 2001 (June 06, 11, 18 and 26). It is further alleged from the trade and order log that, SPS used to place the sell order first which would be matched by a corresponding buy order from Tropical Securities, thus, violating Regulation 4(b), 4(c) and 4(d) of SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Markets)Regulations ,1995 read with Clauses A(1), A(2), A(3) and A(4) of the Code of Conduct prescribed under Schedule II to Regulation 7 of SEBI(Stock Brokers and Sub-Brokers) Regulations, 1992.”
Order in the matter of enquiry proceedings against SPS Shares Brokers Pvt. Ltd. Page 4 of 7 4. On the basis of the aforesaid enquiry report, a show cause notice dated September 19, 2018 (hereinafter referred to as “SCN-2”) was issued under Regulation 28 (1) of the Intermediaries Regulations, calling upon the Noticee to show cause as to why action as recommended in the enquiry report or any other action as deemed fit by the competent authority should not be taken in terms of Regulation 28(1) and (2) of the Intermediaries Regulations.
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Source: SecMarx — sebi:WTM/AB/EFD-1/DRA-IV/32/2019-20. 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.