sebi:WTM/PS/04/IVD/ID-06/APRIL/2012
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Facts / Headnote
Warning issued to the noticee
Provisions invoked
- s. 19
Regulations
- Reg. 7
- Reg. 3
- Reg. 4(a)
- Reg. 28(2)
- Reg. 28
- Reg. 27
- Reg. 38(2)
- Reg. 5(1)
Parties
- M/s Claridges Investment and Finance Pvt. Ltd.
Holding
The noticee violated Clauses A(2) and A(5) of the Code of Conduct for Stock Brokers stipulated in Schedule II under Regulation 7 of the Broker Regulations, but the allegation of price manipulation in the scrip of CSL was not established. The noticee was warned to be cautious in its future dealings.
Full text
Page 2 of 7 traded in the scrip of CSL on behalf of its client, CCL. It was alleged, inter alia, that the noticee was a part of manipulation in the scrip of CSL
Page 3 of 7 manner as it deemed fit. A copy of the Enquiry Report was also forwarded to the noticee along with the SCN. 5. The noticee, vide its letter dated October 25, 2010, requested for an extension of 2 weeks for filing their reply. However, no reply was received from the noticee. A reminder, vide letter dated May 24, 2011, was sent to the noticee directing it to file its reply within 10 days from the date thereof. Thereafter, another reminder letter dated June 21, 2011 was sent to the noticee asking it to file their reply within 10 days, but the entity did not file any reply to the SCN. Before proceeding further, an opportunity of personal hearing was granted to the noticee on September 02, 2011 vide hearing notice dated July 19, 2011, but the letter could not be delivered to the entity. Therefore, a letter dated July 28, 2011 was sent to the noticee’s advocate for onward delivery of the notice for hearing to the noticee. In the meantime, the noticee replied to the SCN vide its letter dated July 25, 2011. On the date scheduled for personal hearing, Mr. Amit Yadkikar, Advocate and Mr. Ashwin Shah, CFO of the noticee appeared and made oral submissions. The submissions of the noticee, inter alia, are: The noticee did not wish to file any further written submissions and its previous replies may be considered. The noticee has not been operating as a broker for the past 7-8 years and its registration is not active.
Page 4 of 7 Whether the noticee made payments to its client CCL prior to the payout at the exchange in violation of Clause A(5) of the Code of Conduct for Stock Brokers as prescribed under Regulation 7 of the Broker Regulations? Whether the noticee indulged in price manipulation in the scrip of CSL in violation of Regulations 4(a), 4(b), 4(c) and 4(d) of PFUTP 1995 read with corresponding Regulations 3, 4(1), 4(2) (a), 4 (2) (b), 4 (2) (d), 4(2) (e), 4 (2) (g), 4 (2)(n) and 4(2)(o) of PFUTP 2003?
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Source: SecMarx — sebi:WTM/PS/04/IVD/ID-06/APRIL/2012. 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.