sebi:WTM/TCN/ID3/93/02/2007

SEBI · SEBI · 2001-05-29 · Shri T C Nair, Whole Time Member

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Facts / Headnote

Certificate of registration suspended for a period of 15 days, operative after 21 days of passing the order

Provisions invoked

Regulations

Parties

Holding

M/s. Shailee Securities contravened Regulation 4 of the SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 1995 and the Code of Conduct under Schedule II read with Regulation 15 of the SEBI (Stock Brokers and Sub-brokers) Regulations, 1992, and its certificate of registration as sub-broker was suspended for 15 days.

Full text

7.      Though the resolution was passed to allot shares in the above manner, no allotment was made within stipulated period of three months. An Extra Ordinary General Meeting held on May 29, 2001 wherein a resolution was passed to allot 30,00,000 shares at Rs.10/- each for cash at a premium of Rs.27/- per share aggregating to Rs.11,10,00,000/ preferential basis to the persons mentioned in the above table. It was observed that this premium structure was reduced from Rs.42/- to Rs. 27/- per share.

15. I note that the Enquiry Officer after holding the Enquiry in accordance with the prescribed regulations and after appreciating the evidence submitted the Enquiry Report to the B the Enquiry Report, the Enquiry Officer has observed that: i) The sub-broker had mainly squared off his trades and the trading pattern was such that the buy and sell orders were set off against each other and delivery was minimal; ii) The sub-broker failed to take note of the nature of trades routed through it and that the sub-broker was only concerned about pay-in and pay-out and that no default aros trades; iii) By failing to exercise due diligence the sub-broker did inadvertently facilitate the manipulation in the said scrip, by allowing such trades to be routed through them which of effecting transfer of beneficial ownership.

24. The period of suspension shall be operative after 21 days of passing this order. Place: Mumbai                                                                                                                                                     T C NAIR Date:  22.02.2007                                                                                                                   WHOLE TIME MEMBER                                                                                                           SECURITIES AND EXCHANGE BOARD OF INDIA 26/10/2025, 19:12 about:blank about:blank 4/4

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Source: SecMarx — sebi:WTM/TCN/ID3/93/02/2007. 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.