sebi:WTM/GA/145/ISD/2/07
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Facts / Headnote
Major penalty imposed: suspension of certificate of registration for six months
Regulations
- Reg. 4
- Reg. 13(4)
- Reg. 5(1)
- Reg. 13(2)
- Reg. 5
- Reg. 200
Parties
- SMIFS Securities Limited
Holding
SMIFS Securities Limited was found to have violated Regulation 4(a) to (d) of the FUTP Regulations by executing cross deals and synchronized transactions in DSQ Industries Ltd. shares for the purpose of creating artificial volume and artificial market/price, and a major penalty of six months' suspension of its registration certificate was imposed.
Full text
Home » Enforcement » Orders » Orders of Chairman/Members Enforcement Enforcement▼ ORDER UNDER SECURITIES AND EXCHANGE BOARD OF INDIA (PROCEDURE FOR HOLDING ENQUIRY BY ENQUIRY OFFICER AND IMPOSING PENALTY) REGULATIONS, 2002 AGIANST SMIFS SECURITIES LIMITED, MEMBER, CALCUTTA STOCK EXCHANGE ASSOCIATION LTD. IN RESPECT OF ITS TRANSACTIONS IN THE SHARES OF DSQ INDUSTRIES LIMITED. WTM/GA/145/ISD/2/07 Date of Hearing: September 13, 2006 Appearances : For noticee : Shri. Pesi Modi, Advocate, Shri Joby Mathew Advocate Shri Santosh Dadheech, Shri Manish Ajmera For Securities and Exchange Board of India: Shri B Rajendran, Deputy General Manager.
trading terminal of CSE from time to time. The selling client was Hulda and buying clients were Dhanbridhi Concerns and SMIFS Capital Markets Ltd. The Broker clarified th sold and bought 4,48,000 shares of DSQ in the said settlement. 3.4 The Broker urged that it had received a letter from Hulda for short delivery and thereafter it had informed the status of the deliver to SMIFS Capital Markets Ltd. as Hula had d only 62,000 shares of DSQ. The Broker added that on receipt of consent from the buying client i.e. SMIFS Capital Markets Ltd. the transaction for the balance quantity was off at the purchase rate itself. It had further submitted that there were no findings in the investigation report to substantiate the charge that the said transactions were non and in the nature of funding transactions. 3.5 In respect of the transactions executed on January 9, 2001 the Broker stated that it had executed the respective orders of its clients on the online trading terminals of CSE. The had also contended that its client, Maya Trade Links Ltd. was neither its shareholders nor there were any common directors and was not a group company of a broke manner whatsoever. The Broker further stated the said Maya Tradelinks Ltd. was holding only 0.45% in SMIFS Capital Markets Ltd. which was a group company holding 49 the paid up equity capital of the Broker. In respect of the transactions executed on January 9, 2001 the Broker claimed that it was wrong to state that the said transactions result in
connection, I note that CSE vide notice dated January 15, 2001 had informed its members that the trading and settlement of shares of DSQ would only be for trade-f settlement with effect from settlement no. 2001143 till further notice.
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Source: SecMarx — sebi:WTM/GA/145/ISD/2/07. 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.