SEBI lets off Emkay for just Rs11 lakh
Moneylife Digital Team 08 June 2015

Without admission or denial of guilt on the part of Emkay  to the  findings  of fact or conclusions  of  law,  Emkay  has remitted  a  sum  of  Rs11,00,800 favouring SEBI  towards the terms of settlement in the matter

 

Securities and Exchange Board of India (SEBI) initiated adjudication  proceedings against Emkay  Global  Financial  Services, to  inquire  into  and  adjudge  under  Section 15HB of the Securities and Exchange Board of India Act, 1992 (‘SEBI Act’) the violation of Clause A(2)  of  Code of Conduct for Stock Brokers as specified under Regulation 7 of  SEBI Stock Brokers and Sub Brokers Regulations, 1992   alleged to have been committed by Emkay with respect to  its  dealing  in  the  scrip  of  Aarey  Drugs  and  Pharmaceuticals Ltd. ('ADPL').
 
In this regard a Show Cause Notice no. A&E/EAD3/DRK-AKS/20949/2013 dated 19.08.2013 (‘SCN’) was served on Emkay which alleged  that  it  had  executed synchronised trades in the scrip of ADPL on behalf of its clients Nita B Bhavsar,  Jipal  Shah,  Dhavalkumar  Soni  and  C  Shah Champaklal wherein Emkay had acted as both stock broker and counter party  stock  broker. Some of the trades were executed from the same terminal also.  Emkay’s alleged failure to exercise due skill and care made it liable for a monetary penalty under Section 15 HB of the SEBI Act.
 
Pending adjudication proceedings, Emkay submitted a consent application in December 2013 to SEBI for settlement of the case. Later, Emkay representatives submitted before SEBI the revised settlement terms with an amount of Rs11,00,800 towards settlement charges. The settlement terms were placed before the High Powered Advisory Committee on Consent, which looked into the matter and recommended the case for settlement.
 
Without admission or denial of guilt on the part of Emkay  to the  findings  of  fact  or conclusions  of  law,  Emkay  has remitted  a  sum  of  Rs11,00,800 favouring  SEBI towards the terms of settlement in the matter.
 
SEBI said that the settlement order is passed on 5 June, 2015 and shall come into force with immediate effect.
 
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