sebi:WTM/TCN/71/IVD/12/06

SEBI · SEBI · 2001-07-11 · Dr. T.C. Nair, Whole Time Member

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Facts / Headnote

Suspension of registration for a period of four months

Provisions invoked

• s. 19

Regulations

• Reg. 7
• Reg. 4
• Reg. 13(4)
• Reg. 13(2)
• Reg. 13
• Reg. 5
• Reg. 9
• Reg. 6(1)

Parties

• M/s. Kishore R Ajmera, member, Bombay Stock Exchange Limited, having SEBI Registration No. INB01013319

Holding

The registration of M/s. Kishore R Ajmera (INB01013319) was suspended for four months for failure to exercise due skill, care and diligence in violation of Clauses A(1), A(2), A(3) and A(4) of the Code of Conduct read with Regulation 7 of the Broker Regulations. This order shall come into force after 21 days from the date of this order.

Full text

Home » Enforcement » Orders » Orders of Chairman/Members Enforcement Enforcement▼ Order against M/s. Kishore R Ajmera Dec 27, 2006 | Orders : Orders of Chairman/Members Before the Securities and Exchange Board of India CORAM: Dr.T.C. NAIR, WHOLE TIME MEMBER WTM/TCN/71/IVD/12/06 Against M/s. Kishore R Ajmera, member, Bombay Stock Exchange Limited, having SEBI Registration No.INB01013319. 14943 24 9 1. 2. 3. 4. 5. 6. 7. 1

BROKER Gross Sales % KISHORE AJMERA 77700 6.73 TOTAL 1154100 During the above period, the broker had bought 66,300 shares and sold 77,700 shares on behalf of its client Mayekar. During the period August 07, 2000 to August 31,2 broker’s trading was as under: Through sub-broker Client Gross Purchase Gross sales Prakash S & Co. Mayekar Investments 32500 20800 1.9 Therefore, it was observed during  investigation that having executed these large trades by matching of orders in an illiquid scrip like MEL within a short span of time, which res creation of artificial volumes, the broker failed to exercise due skill, care and diligence in the conduct of its business and violated the provisions of clause A(1) (2) (3) and (4 Code of Conduct for brokers specified in Schedule II read with Regulation 7 of SEBI (Stock Broker and Sub-Broker) Regulations, 1992.

c)      With regard to the relationship between Mayekar and K.P. Securities, the broker submitted that it was not aware of the said relationship and also submitted that th of relationship was confirmed by Mr. Prakash Shantilal who had filed affidavit dated January 12, 2004 in this regard before the enquiry officer. d)     That the risk management system was working continuously and because of the volume in this particular scrip being of insignificant quantity there was no suspi the broker. e)     That regarding the margin and the credit balances, it was reiterated that during the period it had sufficient credit balance with it and the fact that there is no outs un-discharged commitments shows that all the transactions have been honoured. f)        further it was submitted by the broker that it had neither failed to exercise the due diligence nor committed any breach of code of conduct or any rules or regula

Source: SecMarx — sebi:WTM/TCN/71/IVD/12/06. 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.