sebi:WTM/PS/06/IVD/ID-6/MAY/2011
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Facts / Headnote
Warning to be cautious and exercise due care and diligence
Provisions invoked
- s. 19
Regulations
- Reg. 7
- Reg. 3
- Reg. 5(1)
- Reg. 4(a)
- Reg. 28(2)
- Reg. 28
- Reg. 27
- Reg. 5
- Reg. 38(2)
Parties
- Macy Securities Ltd.
Holding
Macy Securities Ltd. was warned to be cautious and exercise due care and diligence for violating Clauses A(1), A(2) and A(5) of the Code of Conduct, while the allegations of violation of PFUTP Regulations, 1995 and 2003 were held not established.
Full text
Page 2 of 6 Rs.2/-, the price was proportionally reduced to Rs.186/- with effect from September 26, 2000. Since then, the price of the scrip moved in the range of Rs.190/- to Rs.147/- till February, 2001. Thereafter, M/s. Century Consultants Ltd. (hereinafter referred to as ‘CCL’), a company related to CSL, member of NSE and BSE defaulted and the price of the scrip of CSL fell everyday by 16% (Lower Circuit).
Page 3 of 6 violating of the Code of Conduct specified under Schedule II of the Broker Regulations. 5. Subsequently a notice dated July 1, 2009 (hereinafter referred as ‘SCN’) under Regulation 28 of SEBI (Intermediaries) Regulations, 2008, was issued to the noticee, asking it to show cause as to why action as recommended by the Enquiry Officer or a higher penalty should not be imposed on noticee. The noticee was advised to reply to the SCN, within twenty one days from the date of receipt thereof. It was also informed that in case of failure, it would be presumed that it had no explanation to offer and SEBI shall be free to take such action in the manner as it deemed fit. A copy of the Enquiry Report was also forwarded to the noticee along with the SCN.
Page 4 of 6 7. I have carefully considered the Enquiry Report, the SCN issued to the notice along with the reply thereto and other material available on record. I also note that the Enquiry Officer has given the benefit of doubt to the noticee in respect of the allegation of violation of PFUTP Regulations, 1995 read with PFUTP Regulations,
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Source: SecMarx — sebi:WTM/PS/06/IVD/ID-6/MAY/2011. 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.