sebi:WTM/PS/77/IVD/ID-06/MARCH/2012
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Facts / Headnote
Warning issued to Kansal Brothers for violation of Clause A(2) of the Code of Conduct for Sub Brokers; other charges not established
Provisions invoked
- s. 19
- s. 138
Regulations
- Reg. 5(1)
- Reg. 13
- Reg. 15
- Reg. 4(b)
- Reg. 28(2)
- Reg. 28
- Reg. 27
Parties
- M/s Kansal Brothers
Holding
The noticee Kansal Brothers was found to have violated Regulation 15 read with Clause A(2) of the Code of Conduct for Sub Brokers for failing to exercise due care and diligence while trading in the scrip of Orient, and was warned to be cautious in future dealings. The allegations of not maintaining separate accounts, giving third party delivery, and executing self trades were not established.
Full text
Page 2 of 9 August 30, 2002 to September 26, 2002 and October 16, 2002 to October 28, 2002. The unusual rise in volume was found to have not been accompanied by any corporate announcement or development made by the company. Investigations further revealed that there was large scale trading carried out in the scrip of Orient by Shri. Aushim Khetrapal (hereinafter referred to as ‘Aushim’), who was the Managing Director of Orient and another company namely, M/s Denim Enterprises Ltd (now known as ‘M/s Divine Entertainment Ltd’, hereinafter referred to as ‘Divine’), on his own account as well as on behalf of his front company viz., M/s Vincomp Marketing Pvt. Ltd (hereinafter referred to as ‘Vincomp’).
Page 3 of 9 i. Regulations 4(b) and 4(c) of SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 1995 read with provisions of Regulation 13 of SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 2003. ii. Clauses A(1), A(2), D(4) and D(5) of the Code of Conduct prescribed for Sub Brokers in Schedule II under Regulation 15 of SEBI (Stock Brokers and Sub- Brokers) Regulations, 1992.
Page 4 of 9 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.
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Source: SecMarx — sebi:WTM/PS/77/IVD/ID-06/MARCH/2012. 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.