Securities Appellate Tribunal has upheld regulator Sebi's order against Angel Broking in case related to violations of stock broker norms and fraudulent dealings in shares of Sterling Green Woods.
Sebi, in December 2013, had levied a total penalty of Rs 30 lakh on Angel Broking and its client Angel Infin for executing self-trades in shares of Sterling Green Woods, back in 2009. Angel Infin had subsequently merged with Angel Broking.
Following Sebi ruling, Angel Broking had challenged the market regulator's order in the case before the tribunal.
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In an order dated October 1, the tribunal said that "modus operandi adopted by Angel Broking Private Ltd in executing self trades and that too buying shares at a higher price and selling at a lower price clearly show that the trades executed were not normal trades".
"In these circumstances, (Sebi's) adjudicating officer is justified in holding that self trades were executed with ulterior motives," SAT said adding that the quantum of penalty imposed on the broker by the regulator "cannot be faulted".
The case relates to a Sebi probe into share trading of Sterling Green Woods for the period - November 6, 2009 to December 2, 2009.
It was observed that during the investigation period, the price of the scrip moved from Rs 19.80 to Rs 42.50 with an average daily volume of 69,776 shares.
Sebi probe had found that Angel Infin had on November 30, 2009 and December 1, 2009 executed 4 self trades in shares of Sterling Green Woods, wherein Angel Broking acted as broker as well as counter party broker.
The market regulator had imposed Rs 20 lakh on Angel Broking for violating stock broker norms and fraudulent trade practices.
Besides, it had slapped a penalty of Rs 10 lakh on Angel Infin for violations of 'Prohibition of Fraudulent and Unfair Trade Practice (PFUTP)' regulations.
