sebi:WTM/SKM//EFD1-DRAIII/09/2019-20

SEBI · SEBI · 2014-04-30 · S. K. Mohanty, Whole Time Member

Reviewed by Varun Matlani, Advocate — Securities Lawyer practicing in SAT and SEBI

Facts / Headnote

Proceedings disposed of without any modification to the Adjudication Officer's order dated April 30, 2014; allegations of violation not established.

Provisions invoked

s. 15
s. 12A

Regulations relied on

SEBI (PFUTP) Regulations, 2003
SEBI (Stock Brokers) Regulations, 1992

Parties

AKG Securities (Noticee no. 1)
Adroit (Noticee no. 2)

Holding

The self-trades executed by Noticee no. 1 in the scrip of BGIL were found to be accidental rather than intentional or manipulative, and Noticee no. 2 (the broker) could not be held liable for aiding and abetting. The allegations of violation of SEBI Act, PFUTP Regulations, and Code of Conduct were not established, and the proceedings were disposed of without modification to the AO's April 30, 2014 order.

Full text

Order in the matter of Bharatiya Global Infomedia Limited Page 2 of 18 in the scrip of BGIL, hence Adroit (Noticee no. 2) has been alleged to have aided and abetted in execution of the self-trades.

Order in the matter of Bharatiya Global Infomedia Limited Page 3 of 18  Considering the high volume in the scrip of BGIL on the day of listing and matching of trades from different terminals, it is difficult to conclude that the trades were executed with any prior meeting of minds.  There is no allegation of price manipulation and the evidence on record are not sufficient to hold the charges levelled against the Noticees.

Order in the matter of Bharatiya Global Infomedia Limited Page 4 of 18 (d) The matching of orders by way of self-trades is not acceptable and the leniency shown by the AO would be detrimental to market discipline.

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Source: SecMarx — sebi:WTM/SKM//EFD1-DRAIII/09/2019-20. 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.