sebi:WTM/PS/21/IVD/ID-3/DEC/09
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Facts / Headnote
Warning issued to the noticee under Regulation 28(2) of SEBI (Intermediaries) Regulations, 2008; enquiry proceedings disposed of.
Provisions invoked
- s. 19
- s. 12(1)
- s. 12
Regulations
- Reg. 5(1)
- Reg. 13(2)
- Reg. 13(1)
- Reg. 7
- Reg. 28(2)
- Reg. 38(2)
Parties
- Shraddha Stock Broking Pvt. Ltd.
Holding
The noticee was held to have acted as an unregistered sub-broker in violation of Section 12 of the SEBI Act, 1992, and was warned to be careful and cautious in the conduct of its business and to comply with all statutory provisions.
Full text
Page 2 of 6 2. The investigation prima facie revealed that persons connected with the company, its directors, major shareholders and their affiliates had tried to manipulate the price of the scrip. It was further revealed that the brokers of CSE were found trading on BSE through the brokers of BSE.
Page 3 of 6 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 his reply within fifteen 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 6 - Had acted in the capacity of unregistered sub-broker for a very short duration and same may not be viewed seriously as it was a technical lapse. - Had acted as unregistered sub-broker only once. - Relied upon the order of Hon’ble Supreme Court of India in the matters of Hindustan Steel Vs. State of Orissa1 and Ex-Naik Sardar Singh Vs. Union of India2
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Source: SecMarx — sebi:WTM/PS/21/IVD/ID-3/DEC/09. 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.