sebi:WTM/PS/68/IVD/ID-1/JAN/2011
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Facts / Headnote
Certificate of registration of stock broker DPS Shares and Securities Pvt. Limited (SEBI Registration no. INB 010986539) suspended for a period of one month; order to come into force on expiry of twenty one days from the date of the order.
Provisions invoked
- s. 19
Regulations
- Reg. 7
- Reg. 5(1)
- Reg. 13(2)
- Reg. 4(a)
- Reg. 28(2)
- Reg. 27
- Reg. 28(1)
- Reg. 38(2)
Parties
- DPS Shares and Securities Pvt. Limited
Holding
The noticee DPS Shares and Securities Pvt. Limited was found guilty of violating Regulation 4(a),(b),(c) and (d) of the PFUTP Regulations and the Code of Conduct prescribed for stock brokers under Regulation 7 of the Broker Regulations, and its certificate of registration was suspended for one month.
Full text
Page 2 of 9 noticee), Unique Stockbro Pvt. Limited (hereinafter referred to as Unique), Networth Broking Limited (hereinafter referred to as Networth) and Action Financial Services (I) Limited (hereinafter referred to as Action) and their clients were found trading intra-day for 40 days in circular manner during the relevant period in the scrip. The total volume generated by way of such circular trades was 4,28,749 shares i.e. about 19% of the total quantity traded during the period under investigation. The contribution of these trades investigation revealed that through collusion, the brokers and their clients have indulged in circular and synchronized trading and transacted in the shares of GGAGL in such a manner which led to creation of artificial volumes in market leading to significant price movement in the scrip.
Page 3 of 9 Regulation 28(1) and Regulation 38(2) of the SEBI (Intermediaries) Regulations, 2008, was issued by SEBI to the noticee, asking it to show cause as to why the appropriate penalty including penalty as recommended by the Enquiry Officer should not be imposed. The noticee was advised to reply to the SCN, within twenty one days from the date of 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 SCN.
Page 4 of 9 8. Whether the noticee in collusion with other brokers created artificial liquidity/ false market in the scrip of GGAGL?
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Source: SecMarx — sebi:WTM/PS/68/IVD/ID-1/JAN/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.