sebi:WTM/RKA/ID-6/31/2013
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Facts / Headnote
Certificate of registration of the noticee suspended for a period of one month
Provisions invoked
- s. 19
- s. 12(1)
- s. 12
- s. 12(3)
Regulations
- Reg. 7
- Reg. 3
- Reg. 13
- Reg. 4(b)
- Reg. 200
- Reg. 28(2)
- Reg. 30
- Reg. 11(1)
- Reg. 28(1)
Parties
- GKK Capital Markets Pvt. Ltd.
Holding
The noticee, GKK Capital Markets Pvt. Ltd., violated section 12(1) of the SEBI Act, regulation 11(1) of the Stock Brokers Regulations, regulations 4(b) and 4(c) of the PFUTP Regulations, 1995 read with regulation 13 of the PFUTP Regulations 2003, and clauses A(1) to A(5) of the Code of Conduct of Stock Brokers read with regulation 7 of the Stock Brokers Regulations. Its certificate of registration as a stock broker and member of Calcutta Stock Exchange Limited was suspended for one month.
Full text
Page 2 of 10 4. After considering the Report of the DA, a show cause notice (SCN) dated April 06, 2011 was issued to the noticee under regulation 28(1) of the Intermediaries Regulations calling upon it to show cause as to why action as recommended by the DA should not be taken against it or higher penalty should not be imposed on it as deemed fit by the Competent Authority. The noticee chose to file a consent application which was rejected by SEBI. Thereafter, the noticee filed its reply to the SCN. The relevant contents of the reply of the noticee are reproduced hereunder:
Page 3 of 10 2002 to September 26, 2002 and October 16, 2002 to October 28, 2002 as given in the following Table: Table-1 -Price / Volume data Sr. No. Time Period Price / Volume Data
Page 4 of 10 10. It has been further observed that, during the investigation period, the noticee (as a sub-broker of TCP) bought 5,00,100 shares and sold 4,39,400 shares of OTL for Vincomp at BSE. Thus, it traded in total 9,39,500 shares (16.48% of total the market volume of 56,97,585 shares). The counter party to the sell orders of Vincomp for 4,22,800 shares (7.42% of the total market volume i.e. 56,97,585 shares), placed through the noticee, was Mr. Khetrapal trading through Kansal Brothers, a registered sub-broker of IKM (a stock broker and member of BSE). Such trades are given in the following Table: Table-3- Trades of the Noticee for Vincomp wherein Mr. Khetarpal was a counter party
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Source: SecMarx — sebi:WTM/RKA/ID-6/31/2013. 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.