sebi:WTM/MPB/EFD-1-DRA-3/02/2019
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Facts / Headnote
Noticee prohibited from taking up any new assignment or contract or launching a new scheme for a period of six months and barred from proprietary trading for the same period; SCN disposed of.
Provisions invoked
- s. 11B
- s. 19
- s. 12
- s. 12(3)
Regulations
- Reg. 7
- Reg. 28(2)
- Reg. 24
- Reg. 28(1)
- Reg. 30(3)
Parties
- Galaxy Broking Limited (presently known as Starlink Finsec Limited)
Holding
The Noticee, Galaxy Broking Limited, failed to exercise due skill, care and diligence in avoiding execution of manipulative trades on behalf of its clients in the scrip of Sarang, thereby violating clause A(2) of the Code of Conduct under Schedule II read with regulation 7 of the Brokers Regulations. The Noticee was prohibited from taking up any new assignment or contract for six months and barred from proprietary trading for the same period.
Full text
Order in the matter of Galaxy Broking Limited (presently known as Starlink Finsec Limited) Page 2 of 16 0.31 to Rs.0.90 and out of 21 group entities 13 entities off-loaded shares at increased prices and made an unlawful gain of Rs. 1.60 crores.
Order in the matter of Galaxy Broking Limited (presently known as Starlink Finsec Limited) Page 3 of 16 6. The Noticee was advised to reply to the SCN within twenty one (21) days from the date of receipt of the SCN. SEBI also informed the Noticee that in case of failure to reply, it would be presumed that they had no explanation to offer and that the matter would be proceeded on the basis of the evidence available on record. The Noticee was further advised to indicate if they would like to avail an opportunity of personal hearing before SEBI. A copy of the Report of DA was also forwarded to the Noticee along with the said SCN.
Order in the matter of Galaxy Broking Limited (presently known as Starlink Finsec Limited) Page 4 of 16 thereby violated the provisions of clause A (2) of the Code of Conduct under Schedule II read with regulation 7 of the Brokers Regulations.
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Source: SecMarx — sebi:WTM/MPB/EFD-1-DRA-3/02/2019. 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.