sebi:WTM/KMA/ERO/IVD/95/07/09
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Facts / Headnote
Enquiry proceedings disposed of without imposing any further penalty on the stock broker
Provisions invoked
- s. 19
Regulations
- Reg. 28(2)
- Reg. 4(2)(a)
Parties
- M/s. M. Bhiwaniwala & Co.
Holding
The Broker was found to have violated Regulations 4(2)(a) and 4(2)(e) of the PFUTP Regulations and Clauses A(1) to A(4) of the Code of Conduct under Schedule II of the Broker Regulations, but no further penalty was imposed given the prior period of prohibition already undergone.
Full text
Page 2 of 6 brokers including M/s M. Bhiwaniwala & Co., not to buy, sell or deal in securities, in any manner, either directly or indirectly, till further directions. The said order was confirmed (as against the stock brokers), by SEBI, vide order dated January 12, 2006, as stated therein, after affording an opportunity of hearing.
Page 3 of 6 for Holding Enquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002 (hereinafter referred to as Enquiry Regulations) to enquire into the alleged violations committed by the Broker. Since, the Enquiry Regulations was repealed with effect from the notification of Securities and Exchange Board of India (Intermediaries) Regulations, 2008, the Designated Authority (hereinafter referred to as the Enquiry Officer) submitted his report dated May 12, 2009 under the provisions of the Securities and Exchange Board of India (Intermediaries) Regulations, 2008 and recommended to suspend the certificate of registration of the Broker for a period of two months. The Enquiry Officer further recommended that the period of prohibition already undergone by the Broker in terms of SEBI orders dated September 29, 2005 and January 12, 2006 might be taken into account for the purpose of computing the recommended penalty.
Page 4 of 6 that the average share price of the company at CSE had increased from Rs.95/- to Rs.298.50/- (a rise of 214%) during the relevant period. The stock brokers namely M/s Shyam Lal Sultania, Broker and M/s. Ashok Kumar Kayan collectively executed trades involving 16,93,399 shares in the company during the relevant period. The said trades accounted for approximately 45.34% of the total volume in the shares of the company (during the relevant period). The Broker was found to have transacted in 6,57,299 shares of the company contributing to around 17.60% of the total trading volume in the said shares at CSE, details of which are given below. No. of shares bought % to Total Buy No. of shares sold % to Total Sell Total no. of shares traded % to Total Buy & Sell 2,14,999 11.51 4,42,300 23.69 6,57,299 17.60
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Source: SecMarx — sebi:WTM/KMA/ERO/IVD/95/07/09. 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.