January 06, 2006
SEBI issues warning to M/s. Triveni Management Consultancy
Shri Madhukar, Whole Time Member, SEBI, has passed an order on December 27, 2005 against M/s. Triveni Management Consultancy Services Ltd. (TMCSL), Member, NSE, under Regulation 13(4) of SEBI (Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002 warning on TMCSL and directing it to be more diligent in complying with the SEBI Act, Rules and Regulations framed there under, in the matter of M/s. Morepen Hotels Ltd.
SEBI had conducted an investigation into the dealings of M/s. Morepen Hotels Ltd. (MHL) for the period from June 2000 to December 2000, wherein sudden spurt in the price and volume was observed. Investigations revealed that TMCSL had traded in the scrip on behalf of its client M/s. Vaibhav Laxmi Consultancy who indeed traded for its client M/s. SM Investment. Thus TMCSL had traded for M/s. Vaibhav Laxmi Consultancy without registering M/s. Vaibhav Laxmi Consultancy as its Sub-Broker. Further trading done by Sub-Broker on behalf of the client was alleged to be in violation of SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 1995 and enquiry proceedings were initiated.
On receipt of the report from Enquiry Officer, Show Cause Notice was issued to TMCSL. After considering the submissions made by the Broker, it has been found that the Broker had failed to exercise due skill and care in terms of clause A (2) of the code of conduct prescribed for sub-brokers in schedule II in terms of Regulation 7 of SEBI (Stock Broker and Sub-broker) Regulations, 1992. Thus, the warning has been issued to TMCSL directing it to be more diligent in complying with the SEBI Act, Rules and Regulations framed there under.
January 06, 2006