sebi:WTM/GA/31/ISD/11/05
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Facts / Headnote
Minor penalty imposed: suspension of certificate of registration for fifteen days
Provisions invoked
- s. 16
- s. 15
- s. 23
- s. 34
Regulations
- Reg. 7
- Reg. 199
- Reg. 13(4)
- Reg. 6
- Reg. 4
- Reg. 5(1)
- Reg. 13(2)
- Reg. 13(1)
- Reg. 13(1)(a)
- Reg. 17(1)(i)
Parties
- M/s First Securities Pvt Ltd (INB080631931)
Holding
The Whole Time Member imposed a minor penalty of suspension of the certificate of registration of M/s First Securities Pvt Ltd for fifteen days for failure to exercise due diligence in admitting clients introduced by an HTL employee, which resulted in creation of false market in the scrip of HTL.
Full text
Page 2 of 11 2 April 31, 2000 825.25 The maximum rise in the price of the scrip took place between November 16, 1999 and March 31, 2000 when the price moved from Rs.275 to Rs.815/-. Thereafter the price fell to Rs. 640/- in September 25, 2000. Subsequently, the face value of the shares changed to Rs. 2/- and the price went up from a level of Rs. 123/- on September 26, 2000 to Rs.171/- during February 2001. The scrip continued to trade at around Rs. 150/- till September 14, 2001 and thereafter in the range of Rs. 170/- till January 2002.
Page 3 of 11 3 The above six brokers contributed more than 85% of the total volume in the scrip of HTL during the above period when there was a maximum rise in the price of the scrip from Rs. 275/- to Rs. 815/-.
Page 4 of 11 4 Market) Regulations 1995 was issued to the Broker under Regulation 6 (1) of the regulation, payment not being made and received by the clients, by the enquiry officer and that the broker submitted his reply and appeared for personal hearing. The enquiry officer conducted the enquiry in terms of the regulation and the broker was given a fair and reasonable opportunity to make his submissions.
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Source: SecMarx — sebi:WTM/GA/31/ISD/11/05. 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.