sebi:WTM/GA/8/ERO/5/07

SEBI · SEBI · 2005-09-29 · G. Anantharaman, 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

Suspension of certificate of registration of Shri Sanju Kabra (registration no. INB 031127419), Member, Calcutta Stock Exchange Association Limited for a period of two years, with set-off of period of prohibition already undergone vide SEBI order dated September 29, 2005.

Regulations

• Reg. 4
• Reg. 13(4)
• Reg. 5(1)
• Reg. 13(2)
• Reg. 6
• Reg. 4(2)
• Reg. 47
• Reg. 4(2)(a)
• Reg. 4(2)(e)

Parties

• Shri Sanju Kabra

Holding

It was held that the Broker violated Regulation 4(2)(a) and (e) of FUTP Regulations and Clauses A(1), (2), (3) and 4 of the Code of Conduct under Broker Regulations, and a major penalty of suspension of certificate of registration for two years (with set-off) was imposed, enhancing the Enquiry Officer's recommendation of one month.

Full text

1.4             In the facts and circumstances, Securities and Exchange Board of India (hereinafter referred to as SEBI) vide an ad interim order dated September 29, 2005 inter alia directed the aforesaid stock brokers not to buy, sell or deal in securities in any manner, either directly or indirectly till further directions. Pursuant to the receipt of replies from the aforesaid stock brokers and after granting them an opportunity of hearing, SEBI, vide order dated January 12, 2006 confirmed the said interim order inter alia against the said stock brokers.

i)        Out of the total trades (10,82,151 shares) executed by the Broker in the shares of PCML, trades for 3,16,400 shares were made as cross deals at his own single terminal. i.e the buy and the sell orders were placed by the Broker himself. The cross deals executed by the Broker accounted for 29.2% of its total volume in the shares of PCML. The details of such cross deals are mentioned below: TradeDate Time OrderDate OrderTime MemberName Qty Price B/S CounterPartyName 15-Jun-05 15:26:48 15-Jun-2005 15:15:51 Sanju Kabra 2000 163.00 S Sanju Kabra 15-Jun-05 15:26:48 15-Jun-2005 15:26:48 Sanju Kabra 2000 163.00 B Sanju Kabra 21-Jun-05 15:14:41 21-Jun-2005 15:03:53 Sanju Kabra 1500 171.50 S Sanju Kabra 21-Jun-05 15:14:41 21-Jun-2005 15:14:41 Sanju Kabra 1500 171.50 B Sanju Kabra 23-Jun-05 15:25:33 23-Jun-2005 14:45:57 Sanju Kabra 1500 179.95 S Sanju Kabra 23-Jun-05 15:03:45 23-Jun-2005 14:46:12 Sanju Kabra 1500 179.50 S Sanju Kabra 23-Jun-05 15:03:45 23-Jun-2005 15:03:45 Sanju Kabra 1500 179.50 B Sanju Kabra 23-Jun-05 15:25:33 23-Jun-2005 15:25:33 Sanju Kabra 1500 179.95 B Sanju Kabra 4-Jul-05 14:57:27 4-Jul-2005 14:28:52 Sanju Kabra 2000 202.00 S Sanju Kabra 4-Jul-05 15:02:52 4-Jul-2005 14:29:18 Sanju Kabra 2000 204.00 S Sanju Kabra 4-Jul-05 15:04:26 4-Jul-2005 14:31:07 Sanju Kabra 1000 204.50 S Sanju Kabra 4-Jul-05 14:57:27 4-Jul-2005 14:57:27 Sanju Kabra 2000 202.00 B Sanju Kabra 4-Jul-05 15:02:52 4-Jul-2005 15:02:53 Sanju Kabra 2000 204.00 B Sanju Kabra 4-Jul-05 15:04:26

22-Jun-05 14:49:11 22-Jun-2005 14:22:12 Sanju Kabra 3000 174.95 S Sanju Kabra 22-Jun-05 14:49:11 22-Jun-2005 14:22:26 Sanju Kabra 2000 174.95 S Sanju Kabra 22-Jun-05 14:49:11 22-Jun-2005 14:49:10 Sanju Kabra 3000 174.95 B Sanju Kabra 22-Jun-05 14:49:11 22-Jun-2005 14:49:10 Sanju Kabra 2000 174.95 B Sanju Kabra 27-Jun-05 15:53:06 27-Jun-2005 15:52:28 Sanju Kabra 500 179.95 S Sanju Kabra 27-Jun-05 15:53:06 27-Jun-2005 15:52:43 Sanju Kabra 500 179.95 S Sanju Kabra 27-Jun-05 15:53:06 27-Jun-2005 15:52:50 Sanju Kabra 500 179.95 S Sanju Kabra 27-Jun-05 15:53:06 27-Jun-2005 15:53:05 Sanju Kabra 500 179.95 B Sanju Kabra 27-Jun-05 15:53:06 27-Jun-2005 15:53:05 Sanju Kabra 500 179.95 B Sanju Kabra 27-Jun-05 15:53:06 27-Jun-2005 15:53:05 Sanju Kabra 500 179.95 B Sanju Kabra 29-Jun-05 15:29:34 29-Jun-2005 15:16:00 Sanju Kabra 4000 185.00 S Sanju Kabra 29-Jun-05 15:29:45 29-Jun-2005 15:16:14 Sanju Kabra 800 186.00 S Sanju Kabra 29-Jun-05 15:29:45 29-Jun-2005 15:16:25 Sanju Kabra 3200 187.00 S Sanju Kabra 29-Jun-05 15:29:34 29-Jun-2005 15:29:35 Sanju Kabra 4000 185.00 B Sanju Kabra 29-Jun-05 15:29:45 29-Jun-2005 15:29:45 Sanju Kabra 800 186.00 B Sanju Kabra 29-Jun-05 15:29:45 29-Jun-2005 15:29:45 Sanju Kabra 3200 187.00 B Sanju Kabra 30-Jun-05 15:17:06 30-Jun-2005 14:49:08 Sanju Kabra 2500 191.00 S Sanju Kabra 30-Jun-05 15:17:29 30-Jun-2005 14:49:20 Sanju Kabra 800 191.50 S Sanju Kabra 30-Jun-05 15:17:29 30-Jun-2005 14:49:28 Sanju Kabra 800 191.75 S Sanju Kabra 30-Jun-05 15:17:29 30-Jun-20

Source: SecMarx — sebi:WTM/GA/8/ERO/5/07. 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.