sebi:WTM/SR/IVD/ID-4/17/08/2013
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Facts / Headnote
Warning issued to SPS Share Brokers P. Ltd.; charges under Regulation 4(b),(c),(e) of PFUTP Regulations and Clauses A(3),(4) of Code of Conduct not upheld; charge under Clauses A(1) and (2) of Code of Conduct established
Provisions invoked
- s. 19
Regulations
- Reg. 4
- Reg. 7
- Reg. 5(1)
- Reg. 13(2)
- Reg. 13(1)
- Reg. 28(2)
Parties
- SPS Share Brokers Pvt. Ltd.
Holding
The Noticee's charge of violating Regulation 4(b),(c),(e) of the PFUTP Regulations and Clauses A(3) and (4) of the Code of Conduct was not upheld for lack of evidence of connection with the client or counterparty broker or awareness of intent to synchronise trades, but the charge of violating Clauses A(1) and (2) of the Code of Conduct (due diligence and integrity) was established for failing to notice and act on structured trades by its client and counterparty broker. A warning was issued to the Noticee.
Full text
Page 2 of 10 on May 16, 2001 and touched a high of Rs. 5555.30 on June 4, 2001 with fluctuating volumes. The scrip closed at the upper circuit price between May 25, 2001 to May 31, 2001. Thereafter, the price of the scrip fell to Rs 3925 on June 27, 2001. Volumes of 1012, 1001 and 950 shares in the said scrip were observed on May 8, 2001, May 21, 2001 and June 28, 2001 respectively.
Page 3 of 10 dated January 21, 2004, to enquire into the alleged violation of provisions of the SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 1995 (hereinafter referred to as the “PFUTP Regulations”) and the Code of Conduct for Stock Brokers specified in Schedule II of the SEBI (Stock Brokers and Sub-Broker) Regulations, 1992 (hereinafter referred to as the “Broker Regulations"). The Enquiry Officer submitted the Enquiry Report dated July 26, 2004, in terms of Regulation 13(1) of the Enquiry Regulations recommending thereby a penalty of suspension for a period of five months to be imposed on the Noticee for violating the provisions of Regulation 4 (b), (c) and (e) of the PFUTP Regulations and Clauses A(1), (2), (3) and (4) of the Code of Conduct prescribed for Stock Brokers in Schedule II read with Regulation 7 of the Broker Regulations.
Page 4 of 10 accordance with the SEBI Circular dated April 20, 2007. Subsequently, the proceedings initiated under the SCN were revived as the application for consent was rejected by SEBI. Accordingly, an opportunity of personal hearing was granted to the Noticee on June 4, 2013. On the date fixed for personal hearing, Directors of the Noticee viz. Shri Sandeep Shah and Shri Manish Dave, Shri Manish Chhangani, Advocate and Shri Gaurav Joshi, Advocate appeared for the Noticee and made oral submissions. Subsequently, SEBI has also received written submissions made by the Noticee vide its letter dated June 7, 2013.
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Source: SecMarx — sebi:WTM/SR/IVD/ID-4/17/08/2013. 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.