JV Stock Broking and SPFL Securities have been fined Rs 25 lakh each for violating PFUTP (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations and (Stock Broker and Sub-broker) Regulation, respectively, according to a Sebi order.
The probe observed that JV Stock Broking had executed self trades for 14,235 shares through the broker SPFL Securities during the investigation period.
As per Sebi, SPFL was the broker on both sides of the buy and sell transaction executed by JV Stock Broking, and the self trades had occurred not on just one solitary instance, but on 33 days for 14,235 shares which involved 79 trades in the scrip of Sky Industries, of which 16 for a quantity of 6,935 shares were found to be synchronised.
"JV Stock executed self trades which created artificial volume in the scrip of SIL, leading to false and misleading appearance of trading of the scrip in the securities market, and thus violated... PFUTP Regulations," Sebi said.
With regard to SPFL Securities, the regulator observed that the broker did not remain careful and diligent so as to notice the self trades executed by its client, JV Stock, repeatedly on a large number of days and trades, despite some of such self trades being synchronised.
In 2015, the regulator had imposed a fine of Rs 25 lakh each on the two entities for the violations, through an order.
However, JV Stock Broking and SPFL Securities had appealed against the ruling before the Securities Appellate Tribunal, which had set it aside and directed the regulator to pass fresh order on merits in the matter.
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