sebi:WTM/PS/37/IVD/ID-1/NOV/2011
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Facts / Headnote
Enquiry proceedings disposed of by directing the noticee to be cautious and careful while dealing for its clients in the securities market (warning).
Provisions invoked
- s. 19
Regulations
- Reg. 7
- Reg. 5(1)
- Reg. 28(2)
- Reg. 28(1)
- Reg. 38(2)
Parties
- Ruchiraj Shares & Stock Brokers Private Limited
Holding
The noticee broker was found to have failed to perform its duties under the code of conduct for stock brokers by not suspecting synchronized matched trades of its clients in an illiquid scrip, and was directed to be cautious and careful while dealing for its clients in the securities market.
Full text
Page 2 of 4 referred to as ‘Vivenasri’), executed matched trades, made excess delivery of shares to its client, Vivenasri for the trades carried out by another client Rijan.
Page 3 of 4 5. The noticee replied to the SCN vide its letter dated April 19, 2011. The noticee stated in its reply that it preferred to rely upon the submissions made vide its letter dated December 21, 2009 before the Enquiry Officer. An opportunity of personal hearing was granted to the noticee on June 28, 2011. On the date fixed, Ms. Anamika Dubey, advocate, appeared as the authorized representative of the noticee and made oral submissions.
Page 4 of 4 8. The broker is expected to be cautious when large volumes of trading takes place in an illiquid scrip like Datasoft and that too, while placing orders for the clients. The profile of the company whose shares are being traded should be a subject matter for diligence on the part of the broker. The noticee cannot plead complete ignorance and shrug off its responsibility as a broker and hence the recommendation of a minor penalty to remain cautious and careful, while dealing for its clients in the securities market.
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Source: SecMarx — sebi:WTM/PS/37/IVD/ID-1/NOV/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.