sebi:WTM/TCN/ID1/75/01/08
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Facts / Headnote
Minor penalty of 'Censure' imposed on Fincap Portfolio Ltd.
Provisions invoked
- s. 19
Regulations
- Reg. 7
- Reg. 4
- Reg. 13(2)
- Reg. 13
- Reg. 6(1)
- Reg. 47
Parties
- Fincap Portfolio Ltd.
Holding
The Whole Time Member imposed a minor penalty of 'Censure' on Fincap Portfolio Ltd. for failing to exercise due skill and care in executing synchronized/structured trades in the scrip of DCM Shriram Consolidated Limited, in violation of Clause A(2) of the Code of Conduct under the SEBI (Stock Brokers and Sub-brokers) Regulations, 1992.
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 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 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/ID1/75/01/08. 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.