SEBI lets off Emkay for just Rs11 lakh

SEBI lets off Emkay for just Rs1100000 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 Limited ('ADPL'). In this regard a Show Cause Notice no. Aand 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.