sebi:WTM/GA/9/IVD/9/05
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Facts / Headnote
Minor penalty of suspension of certificate of registration for a period of 30 days, effective on expiry of 21 days from receipt of order
Provisions invoked
- s. 12
- s. 34
Regulations
- Reg. 7
- Reg. 199
- Reg. 13(4)
- Reg. 4
- Reg. 5(1)
- Reg. 13(2)
- Reg. 3
- Reg. 6
- Reg. 13(1)
- Reg. 13(1)(a)
Parties
- M/s ICDS Securities Ltd
Holding
M/s ICDS Securities Ltd violated broker conduct and PFUTP norms by executing manipulative trades for HTL-introduced clients creating false market, and its certificate of registration (INB080763733) is suspended for 30 days.
Full text
Home » Enforcement » Orders » Orders of Chairman/Members Enforcement Enforcement▼ ORDER AGAINST M/s ICDS SECURITIES LTD, MEMBER BANGALORE STOCK EXCHANGE, SEBI REGISTRATION NO. INB080763733 UNDER REGULATION 13(4) SEBI (PROCEDURE FOR HOLDING ENQUIRY BY ENQUIRY OFFICER AND IMPOSING PENALTY) REGULATIONS, 2002 FOR THE IRREGULAR TRANSACTIONS IN THE SCRIP OF HOME TRADE LTD.
1.0 BACK GROUND 1.1. M/s ICDS Securities Ltd (hereinafter referred to as the ‘broker’) is a member of the Bangalore Stock Exchange (hereinafter referred to as ‘BgSE’) and is registered with the Securities and Exchange Board of India (hereinafter referred to as ‘SEBI’) as a Stock broker under Section 12 of SEBI Act, 1992 with Registration Number INB080763733. 1.2. The scrip of Home Trade Ltd.(HTL) was listed at Pune Stock Exchange(PSE) and Bangalore Stock Exchange(BgSE). The scrip was listed at Pune Stock Exchange on November 15, 1999 at Rs 250/- and at BgSE on November 16, 1999 at Rs.275.There was very sharp price rise in the scrip both at PSe and BgSE. The prices reached Rs.315 within two weeks i.e. by December 06,
The maximum rise in the price of the scrip took place between November 16, 1999 and March 31, 2000 (hereinafter mentioned as “during the period under consideration”) when the price moved from Rs.275 to Rs.815/-. 1.3 The total volume in the scrip of HTL at BgSE during the period under consideration was 1,91,000. Investigations revealed that during the period under consideration, only a set of six brokers of the BgSE contributed about 86% of the total buy volume and 88% of the total sell volume in the scrip of HTL at BgSE. The gross purchase and sales figures of these brokers are as follows: Member Name Gross Purchase Gross Sales % to the total buy volume at the Exchange % to the total sell volume at the Exchange Sakruthi Finvest 46,800 48,200 24.50 25.24 Swagath Sec 34,300 34,100 17.96 17.85 Dagaliya Consultants 26,700 29,500 13.98 15.45 ICDS Securities 23,800 23,700 12.46 12.41 M’s Securities 16,800 16,200 8.80 8.48 First Securities 15,800 15,700 8.27 8.22
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Source: SecMarx — sebi:WTM/GA/9/IVD/9/05. 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.