sebi:WTM/PS/57/IVD/ID-05/MARCH/10
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Facts / Headnote
Direction issued to the noticee to be cautious in its future dealings and exercise due care and diligence; warning that future violations shall be dealt with stringently. No monetary penalty imposed.
Provisions invoked
- s. 11B
- s. 11(4)
- s. 19
- s. 11D
Parties
- M/s PNR Securities Limited
Holding
The noticee, M/s PNR Securities Limited, was found responsible for creating a false and misleading appearance of trading in the market and for mis-utilizing and putting at risk the stock exchange mechanism by transferring and mirroring its off-market financing transactions onto the exchange. The noticee was directed to be cautious in future dealings and exercise due care and diligence as a securities market intermediary.
Full text
Page 2 of 5 2. Investigations revealed that M/s PNR Securities Limited (hereinafter referred to as ‘the noticee’) had traded in the shares of Surya Roshni and that it had aided and abetted its client M/s. Tropical Securities and Investment Pvt. Ltd. (hereinafter referred to as ‘Tropical’) and its associates in creating artificial volumes in the scrip. The associates of Tropical are M/s CFL Securities Limited (hereinafter referred to as ‘CFL’), a trading member of National Stock Exchange (hereinafter referred to as ‘NSE’) and M/s. Harbinger Trading Co. Pvt. Ltd. (hereinafter referred to as ‘Harbinger’) a client of CFL. Accordingly, it was proposed in the investigation report that an appropriate order may be passed under Section 11D of the SEBI Act, 1992.
Page 3 of 5 on the delivery of the shares before the trades could be executed. It was admitted that the noticee had given an early pay out to Tropical in order to retain the client and to earn brokerage.
Page 4 of 5 9. From the above chart, I note that the noticee had entered into two structured/matched transactions with CFL. Further, I note that these orders were placed at approximately at the same time, for the same price and for the same quantity. I also note that Harbinger was the ultimate client of CFL for both the transactions.
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Source: SecMarx — sebi:WTM/PS/57/IVD/ID-05/MARCH/10. 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.