sebi:WTM/AB/EFD1/EFD1_DRA1/15507/2021-22
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Facts / Headnote
Warning issued to the Noticee; SCN-2 disposed of
Provisions invoked
- s. 12(3)
Regulations
- Reg. 7
- Reg. 13
- Reg. 4(a)
- Reg. 4(b)
- Reg. 7A
- Reg. 25
- Reg. 27
- Reg. 27(5)
- Reg. 26
- Reg. 27(1)
- Reg. 38
- Reg. 38(1)
Parties
- Nouveau Shares & Securities Limited
Holding
The allegations that Nouveau aided and abetted its client in executing 114 structured trades to manipulate the price of PIL scrip, and that it violated Regulation 4(a), 4(b) and 4(c) of the PFUTP Regulations, 1995, were not sustained. However, the Noticee was found to have violated Clause A(2) of the Code of Conduct for stock brokers by failing to exercise due skill and care and diligence, and a warning was issued.
Full text
Order in the matter of enquiry proceedings against Nouveau Shares & Securities Limited Page 1 of 21 WTM/AB/EFD1/EFD1_DRA1/15507/2021-22 SECURITIES AND EXCHANGE BOARD OF INDIA CORAM: ANANTA BARUA, WHOLE TIME MEMBER
Order in the matter of enquiry proceedings against Nouveau Shares & Securities Limited Page 2 of 21 The scrip of PIL witnessed a low of Rs. 6.45 on August 23, 2000 and a high of Rs. 51.20 on September 18, 2000. It was observed that there was irregular trading pattern in the scrip w.r.t the volumes that were traded in the scrip during the investigation period. It was further observed that Nouveau Shares and Securities Limited, a Stock Broker of NSE (hereinafter referred to as ‘Nouveau’/ ‘Noticee’) having SEBI Registration no. INB230938434, had a trade concentration of 17.76% on gross basis in the scrip of PIL during the investigation period. The Noticee was also the net seller of 78,248 shares of PIL during the said investigation period and was the top Trading Member (TM) at NSE on net sell basis during the above investigation period. The counterparty TM to the trades of the Noticee was predominantly ISJ Share & Stock Brokers Ltd (Stock Broker of NSE) and hereinafter referred to as (‘ISJ’). It was observed that Noticee had traded / dealt in the scrip of PIL on NSE on behalf of its client viz. M/s Goyal Investments (Prop:- Arun Goyal) (hereinafter referred to as ‘client’) who has predominantly sold the PIL shares during the investigation period.
Order in the matter of enquiry proceedings against Nouveau Shares & Securities Limited Page 3 of 21 Regulation 38 of Securities and Exchange Board of India (Intermediaries) Regulations,
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Source: SecMarx — sebi:WTM/AB/EFD1/EFD1_DRA1/15507/2021-22. 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.