sebi:WTM/KMA/ERO/IVD/96/07/2009
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Facts / Headnote
Broker held guilty of contravening Regulation 7 of the Stock Brokers Regulations read with Clause A(1) to A(4) of the Code of Conduct under Schedule II, but no further penalty imposed; proceeding disposed of.
Provisions invoked
- s. 19
Regulations
- Reg. 7
- Reg. 4
- Reg. 28(2)
- Reg. 4(2)(a)
Parties
- M/s. M. Bhiwaniwala & Co.
Holding
The Broker was held guilty of contravening Regulation 7 of the Stock Brokers Regulations read with Clause A(1) to A(4) of the Code of Conduct prescribed under Schedule II of the Stock Brokers Regulations, and also found to have contravened Regulation 4(2)(a), 4(2)(e) of the PFUTP Regulations and the SEBI Circular dated August 26, 2004. However, no further penalty was imposed on the Broker.
Full text
Page 2 of 7 M/s M. Bhiwaniwala & Co. (for its dealings in the shares of Amluckie Investment Company Limited) 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.
Page 3 of 7 Authority (hereinafter referred to as the Enquiry Officer) submitted his report dated April 22, 2009 under the provisions of the Securities and Exchange Board of India (Intermediaries) Regulations, 2008 recommending the suspension of 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 may be taken into account for the purpose of computing the recommended penalty. Subsequently, a notice dated April 27, 2009 was issued by SEBI to the Broker advising it to show cause as to why the penalty as recommended by the Enquiry Officer should not be imposed against it. The Broker was also advised to inform whether it would like to avail the opportunity of hearing. A copy of the Enquiry Report was also forwarded to the Broker along with the said notice. The Broker vide letter dated May 18, 2009 inter alia stated “I don’t have any objection against above order of enquiry officer, so please adjust the above recommended suspension from already suspension of three years”.
Page 4 of 7 period. The Broker was found to have transacted in 4,04,840 shares of the company contributing to around 8.31% of the total trading volume in the said shares at CSE, details of which are given below.
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Source: SecMarx — sebi:WTM/KMA/ERO/IVD/96/07/2009. 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.