sebi:WTM/GA/92/ISD/09/06
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Facts / Headnote
Minor penalty of censure imposed on the certificate of registration of the Broker
Provisions invoked
- s. 12
Regulations
- Reg. 13(4)
- Reg. 5(1)
- Reg. 13(2)
- Reg. 200
- Reg. 3
- Reg. 7
- Reg. 4(b)
- Reg. 199
- Reg. 23
- Reg. 13(1)
Parties
- M/s Indavara Securities
Holding
The Broker violated SEBI Circular dated February 11, 1997 and clause A(2) of the Code of Conduct specified in Schedule II of the Broker Regulations by failing to exercise due skill, care and diligence in assessing the financial capacity of his client before trading on his behalf in the scrip of HTL, and also violated SEBI Circular dated April 11, 1997 by not entering into a member client agreement. A minor penalty of censure was imposed on the Broker's certificate of registration.
Full text
Home » Enforcement » Orders » Orders of Chairman/Members Enforcement Enforcement▼ Order against M/S Indavara Securities, Member, Bangalore Stock Exchange Ltd 28/10/2025, 12:57 about:blank about:blank 1/2
1.1 M/s Indavara Securities (hereinafter referred to as the Broker) is a member of the Bangalore Stock Exchange Ltd. (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 Securities and Exchange Board of India Act, 1992 (hereinafter referred to as the Act) with registration number INB080800718. 1.2 The scrip of Home Trade Ltd. (hereinafter referred to as HTL) was listed at Pune Stock Exchange Ltd. (hereinafter referred to as PSE) on November 15, 1999 at Rs 250/- and at BgSE on November 16, 1999 at Rs.275/-. There was a very sharp rise in the price of the scrip of HTL both at PSE and BgSE. The price of the scrip of HTL reached Rs.315/ -within two weeks of its listing, i.e. by December 06, 1999. 1.3 The subsequent rise in the price of the scrip of HTL is as detailed below: Date Price (Rs.) December 30, 1999 525.00 January 31, 2000 735.00 March 31, 2000 809.00 April 10, 2000 825.25 1.4 The maximum rise in the price of the scrip of HTL took place between November 16, 1999 and March 31, 2000, when it moved from Rs.275/- to Rs.815/-.
1.5 SEBI conducted an investigation under the provisions of SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Markets) Regulations, 1995 (hereinafter referred to as FUTP Regulations) and SEBI (Stock Brokers and Sub-Brokers) Regulations, 1992 (hereinafter referred to as the Broker Regulations) into the buying, selling and dealings in the scrip of HTL inter alia by the members of BgSE including the Broker for their involvement in the alleged circular trading, price manipulation etc. 1.6 The transaction details of the Broker in the scrip of HTL on behalf of his only client, Shri Mahendra Kumar Sancheti, at BgSE are as follows: Period Buy
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Source: SecMarx — sebi:WTM/GA/92/ISD/09/06. 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.