SPJ Stock Brokers to Pay Rs 22 lakh Penalty to SEBI
On Friday, SEBI imposed a fine of Rs 22 lakh on SPJ Stock Brokers. The reason to impose fine was related to synchronised trading in shares of SKS Logistics. The Securities and Exchange Board of India had conducted an investigation into the alleged irregularity in the share trading of SKS Logistics for the period from June 1 to October 29, 2004.
As per SEBI order, the SPJ had executed circular trades on 13 trading days during the period from September 14 to October 29, 2004. SEBI also stated that the circular trades of the SPJ with other members accounted for more than 50 per cent of the total trades on six out of the 13 trading days.
SEBI stated that the facts of the case highlight the noticee’s involvement, by executing synchronised/ circular trades over a period of time in a substantial manner, in the manipulation of price/ volume of the shares of SKS, which led to creation of artificial volumes and misleading appearance of trading in the said shares.
JSP failed to apply due skill, care and diligence and not maintained high standard of integrity, promptitude, fairness in the conduct of its business as a stock broker.