sebi:WTM/PS/44/IVD-ID6/NOV/2014
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Facts / Headnote
Show Cause Notice dated July 11, 2014 disposed of; charges established; penalty of Rs. 5,00,000 imposed; direction to review systems to avoid self trades
Provisions invoked
- s. 15
- s. 19
- s. 12A
- s. 15H
Regulations
- Reg. 7
- Reg. 3
- Reg. 4(1)
- Reg. 3(a)
- Reg. 4(2)(a)
Parties
- Crosseas Capital Services Private Limited
Holding
The Whole Time Member held that the noticee, Crosseas Capital Services Private Limited, contravened Section 12A(a), (b) and (c) of the SEBI Act read with Regulations 3, 4(1) and 4(2)(a) of the PFUTP Regulations and Clause A of the Code of Conduct for Stock Brokers, by executing self trades through its algo trading system, and imposed a penalty of Rs. 5,00,000 along with a direction to review its systems.
Full text
Page 2 of 18 (b) executed 16 self trades on BSE and 1375 self trades on NSE from the same terminal for a total quantity of 81,436 shares in the scrip.
Page 3 of 18 20. In view of the aforesaid observations and findings, I conclude that the violation of provisions of Section 12A (a), (b) and (c) of the Act read with Regulation 3(a), (b), (c), (d) and 4(1) & 4(2)(a) of the PFUTP Regulations and Regulation 7 read with Clause A as mentioned in Schedule II of the Broker Regulations do not stand established.
Page 4 of 18 5. The noticee inter alia made the following submissions vide its reply dated July 16, 2014 : a) The present SCN is wrongly issued against the noticee as the Adjudication Order has concluded that the charges levelled against the noticee do not stand established, and consequently there is no question of levy of any monetary penalty on the noticee.
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Source: SecMarx — sebi:WTM/PS/44/IVD-ID6/NOV/2014. 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.