sebi:WTM/PS/15/IVD/ID-03/MAY/2010
Facts / Headnote
Certificate of registration of stock broker M/s Bipin R. Vora suspended for fifteen days; order effective on expiry of twenty one days from date of order.
Provisions invoked
- s. 19
Regulations relied on
- SEBI (Intermediaries) Regulations, 2008
- SEBI (PFUTP) Regulations, 2003
- SEBI (Stock Brokers) Regulations, 1992
Parties
- M/s Bipin R. Vora
Holding
The noticee stock broker M/s Bipin R. Vora was held to have aided and abetted its clients in creating artificial volumes/liquidity in the scrip of PECL and to have failed to exercise due care and diligence, in violation of PFUTP Regulations and the Code of Conduct for brokers, and its registration certificate was suspended for fifteen days.
Full text
Page 2 of 10 to Rs.29 on June 24, 2004. At NSE, the price of the scrip opened at Rs.30.30, touched a high of Rs.88.60 and closed at Rs.31.65. The variation between high and low price was 200.34%. The average daily volume in the scrip of PECL was 17,933 shares with 70,415 shares being the highest and 950 shares being the lowest.
Page 3 of 10 was issued by SEBI to the noticee, asking it to show cause as to why the appropriate penalty including penalty recommended by the Enquiry Officer should not be imposed. The noticee was advised to reply to the SCN, together with the documents that it may choose to rely upon in support of its reply within twenty one days of the 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 said SCN.
Page 4 of 10 f. Broker would only come to know that the client does not have the shares only when he fails to deliver the shares at the time of payout. g. Ld. Whole Time Member, SEBI has no jurisdiction to hear and decide this SCN as his appointment is in violation of Constitution of India. h. SCN is void ab initio as has been issued by Deputy General Manager. i. The alleged acts had taken place during the years 2003 – 2004, and the Intermediaries Regulations came in effect from 2008. Hence no retrospective effective effect can be given to these regulations. j. The proceedings are suffered by unreasonable delay and latches. k. The Enquiry Report is based on no evidence, mistake of facts and law.
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Source: SecMarx — sebi:WTM/PS/15/IVD/ID-03/MAY/2010. 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.