Home Market Sebi imposes Rs 22 lakh fine on SPJ Stock Brokers

Sebi imposes Rs 22 lakh fine on SPJ Stock Brokers


Markets regulator Sebi today imposed a total penalty of Rs 22 lakh on SPJ Stock Brokers in a matter related to synchronised trading in shares of SKS Logistics.

The Securities and Exchange Board of India (Sebi) had conducted an investigation into the alleged irregularity in the share trading of SKS Logistics for the period from June 1 to October 29, 2004.

According to a Sebi order, SPJ had executed circular trades on 13 trading days during the period from September 14 to October 29, 2004.

The circular trades of the noticee (SPJ) with other members accounted for more than 50 per cent of the total trades on six out of the 13 trading days, Sebi said.

"The facts of the case highlight the noticee's involvement, by executing synchronised/ circular trades over a period of time in a substantial manner, in the manipulation of price/ volume of the shares of SKS, which led to creation of artificial volumes and misleading appearance of trading in the said shares," it said.

As per Stock Brokers and Sub Brokers Regulations, a stock broker shall not create false market or indulge in any act detrimental to the investors' interest or which leads to the interference with the fair and smooth functioning of the securities market.

"… the noticee had failed to exercise due skill, care and diligence and not maintained high standard of integrity, promptitude, fairness in the conduct of its business as a stock broker," Sebi said.

As per the order, SPJ violated PFUTP (Prohibition of Fraudulent and Unfair trade Practices Relating to Securities Market) Regulations and Broker Regulations.

For the violation, the regulator has imposed a total penalty of Rs 22 lakh on the stock broker.

In a separate order, the regulator levied a penalty of Rs 4 lakh each on Agrahar Securities and BgSE Financials for violating Broker Regulations. PTI VRN MR MR 05112016 NNNN

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