sebi:WTM/SKM/EFD1-DRAIII/11/2019-20
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Facts / Headnote
Proceedings against Noticees no. 1 and 2 disposed of without modification of the Adjudicating Officer's order dated April 30, 2014; allegations of violation not established.
Provisions invoked
- s. 15
- s. 12A
Regulations
- Reg. 7
- Reg. 3
- Reg. 3(a)
- Reg. 7A
Parties
- Chandrana (Noticee no. 1)
- Marwadi (Noticee no. 2)
Holding
The allegations of violation of the SEBI Act, PFUTP Regulations and the Code of Conduct under the Stock Broker Regulations against the Noticees are not established, and the proceedings are disposed of without any modification of the Adjudicating Officer's order dated April 30, 2014.
Full text
Order in the matter of Bharatiya Global Infomedia Limited Page 2 of 20 on the day of listing of the scrip of BGIL. Further, Marwardi was alleged to have aided and abetted the Noticee no.1 in execution of the alleged self-trades.
Order in the matter of Bharatiya Global Infomedia Limited Page 3 of 20 no. 2 had executed orders in the capacity of a broker for Chandrana, for a total quantity of 85,13,772 shares. That out of the total quantity of 85,13,772 shares of BGIL traded by Marwadi for Chandrana, it has been alleged in the SCN that trades carried out for 22,652 shares were in the nature of self-trades which were found to have been executed using the same terminal. These self-trades constitute 0.27% of total volume traded by Chandrana in the scrip of BGIL on July 28, 2011 and 0.03% of the total volume of shares of BGIL traded on both the exchanges, which cannot be said to have adversely impacted in creating artificial volumes in the scrip of BGIL. That from the total volume of 8,83,04,275 shares traded in the scrip of BGIL on both the exchanges on the day of listing, a total number of 1,89,459 shares traded by Noticee no. 1 were in the nature of self-trades, and the same constitutes only 0.21% of the total volumes in the scrip of BGIL on its listing day on BSE and NSE. That self-trades were executed due to matching of orders placed from different terminals used by different dealers of the Noticee No.1. That the quantities of shares which were getting matched, were of insignificant quantity. That there is no allegation of indulging in price manipulation against the Noticee no. 1. That evidence available on record is insufficient to hold that the trades executed by Noticee no. 1 through Not
Order in the matter of Bharatiya Global Infomedia Limited Page 4 of 20 appropriate penalty be not imposed on them for the alleged violation of section 12A (a), (b) and (c) of the SEBI Act read with regulations 3, 4(1) and 4(2) (a) of the PFUTP Regulations read with provisions related to Code of Conduct prescribed under stock broker regulations.
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Source: SecMarx — sebi:WTM/SKM/EFD1-DRAIII/11/2019-20. 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.