sebi:WTM/TCN/ID1/58/OCT/08
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Facts / Headnote
Minor penalty of suspension of certificate of registration for 15 days imposed on RBSL
Provisions invoked
- s. 19
Regulations
- Reg. 7
- Reg. 4
- Reg. 13(2)
- Reg. 13
- Reg. 6(1)
- Reg. 47
Parties
- M/s. Rosy Blue Securities Pvt. Ltd. (RBSL)
Holding
RBSL was found to have violated Clause A(2) of the Code of Conduct under Schedule II of the SEBI (Stock Brokers and Sub-brokers) Regulations, 1992 by failing to exercise due skill and care in executing synchronized/structured trades on behalf of its client Tropical in the scrip of DCM Shriram Consolidated Limited. A minor penalty of suspension of its certificate of registration for 15 days was imposed.
Full text
2 1.2 SEBI conducted investigation into the buying, selling and dealings in the scrip of DCM Shriram Consolidated Limited (hereinafter referred to as ‘DCM’) for the period from March 12, 2001 to April 24, 2001 inter alia, to ascertain whether there was any violation of the provisions of SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 1995 (hereinafter referred to as ‘PFUTP Regulations’), SEBI (Stock Brokers and Sub Brokers) Regulations, 1992 (hereinafter referred to as ‘Broker Regulations’) and Regulations and Bye Laws of the Stock Exchange of which it is a broker. The trading details of the persons who had traded in the scrip were collected and analyzed along with the data of the volumes contributed by the entities. From these details it was found that the two groups ‐ HB Group and CFL group which are interconnected, had purchased and sold more than 90% of the total market volume of DCM during the investigation period.
3 for 93.82% of the market volume. It was also observed that Taurus Mutual Fund was the major net purchaser. 1.5 There were 14 clients viz. Tropical, Har Sai Investments ltd., CFL Securities Ltd., Gloria Investments Ltd., H B Stockholdings Ltd., H.B Portfolio Ltd., Ivory Securities Ltd., Penwell Traders Ltd., Alaknanda Capital Services Pvt. Ltd., Shri Lalit Bhasin, H. C. Bhasin & Sons (HUF), Ms. Anju Bhasin, Ms. Mamta Kapur and RRB Securities Ltd. who sold 8,37,293 shares accounting for 95.68% of the market volume.
4 1.7 It was observed in the investigation that the major buying and selling in the scrip was generated by two groups i.e. H B Group and CFL Group. The clients of both these groups have together sold 6,98,362 shares which accounted for 79.80% of the market volume and together purchased 6,74,669 shares accounting to 77.09% of the market volume during the investigation period. Gloria Investment Ltd. and Penwell Traders Ltd. have together purchased 1,46,400 shares accounting for 16.73% of the market volume and sold 1,38,931 shares accounting for 15.88% of the market volume during the period of investigation. This makes the purchase and sale by these entities more than 90% of the total market volume of DCM during the investigation period.
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Source: SecMarx — sebi:WTM/TCN/ID1/58/OCT/08. 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.