sebi:WTM/PS/10/IVD/ID-06/APRIL/2012
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Facts / Headnote
Suspension of certificate of registration of MLD Securities Pvt. Ltd. (SEBI Registration No. INB 51005639) for a period of one month
Provisions invoked
- s. 19
- s. 12(1)
Regulations
- Reg. 7
- Reg. 13
- Reg. 4(a)
- Reg. 4(b)
- Reg. 28(2)
- Reg. 11(1)
- Reg. 28
- Reg. 27
- Reg. 5(1)
- Reg. 38(2)
Parties
- MLD Securities Pvt. Ltd.
Holding
The noticee, MLD Securities Pvt. Ltd., was found to have traded as an unregistered sub-broker on the BSE in violation of Section 12(1) of the SEBI Act and Regulation 11(1) of the Broker Regulations, and to have aided and abetted its client Gajinder Pal Dhody in carrying out manipulative trades in violation of Regulations 4(b) and 4(c) of the PFUTP Regulations, 1995 and Clauses A(1) to A(5) of the Code of Conduct under Schedule II of the Broker Regulations. Its certificate of registration was suspended for one month.
Full text
Page 2 of 8 28, 2002. Investigation prima facie revealed that MLD Securities Pvt. Ltd. (hereinafter referred to as ‘the noticee’/ ‘MLD’), a broker of the Delhi Stock Exchange (hereinafter referred to as ‘DSE’) and a registered client of the BSE stock broker, TCP Stock Brokers Ltd (hereinafter referred to as ‘TCP’), traded on BSE for its clients, and thus acted as an unregistered sub-broker. It was also observed that the noticee received third party delivery of the shares against the sales made by its clients and made advance payments to its clients against the sales made by them in successive settlements. Further, numerous matched and reversal of trades executed by the noticee on behalf of its client(s).
Page 3 of 8 Practices relating to Securities Market) Regulations, 2003 (hereinafter referred to as ‘PFUTP Regulations, 2003’) and Clauses A(1) to (5) of the Code of Conduct specified under Schedule II of the Broker Regulations.
Page 4 of 8 The noticee was never a part of the manipulative trades of Gajinder Pal Dhody and was misled. The noticee accepted its lapses on account of not exercising due diligence and procedural compliance, and requested that a lenient view be taken.
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Source: SecMarx — sebi:WTM/PS/10/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.