Sebi penalty on Ajmera Asso set aside
- Congolese youth murder: Sushma steps in, says govt committed to safety of African nationals
- Bihar: Five arrested in murder case of journalist Rajdeo Ranjan
- LIVE: Pinarayi Vijayan all set to be sworn-in as Kerala chief minister
- Govt clearances faster but lack of promoter interest stalls projects
- Demand-driven boost to economy rides on rains, rural income, pay panel award
The Securities Appellate Tribunal (SAT) today set aside penalty of Rs 1 lakh imposed by Sebi on Ajmera Associates for allegedly violating stock broker norms in case of Advik Laboratories shares.
Setting aside the penalty, SAT observed that Sebi's own findings in the matter had revealed that Ajmera Associates was not guilty of creating false market or that it had indulged in any act detrimental to the investor's interest.
Further the findings has also not proven that Ajmera Associates had not maintained high standards of integrity and fairness as required under norms for code of conduct for stock brokers.
" ...we fail to understand what other skill, care and diligence was required to be exercised by the appellant (Ajmera Associates) in the conduct of its business as a stock broker," SAT said in its order today.
"Even if the client's trading in the scrip (of Advik Laboratories) were with the connected persons, that by itself, is not enough to say that the due diligence of required standard was not maintained," it added.
Sebi had alleged the entity of trading, along with other brokers, in the scrip of Advik Laboratories on behalf of its clients, synchronising their trades, creating artificial volumes and price rise enabling the promoter shareholders to offload their shares at a higher price.
Stocks More on Advik Laboratories
- Increasing attacks on freedoms in between polls must worry us all
- Latest round of assembly polls did not see a BJP wave or a decimation of Congress
- India’s economic growth has been associated with premature industrial suburbanisation
- SC judgment on criminal defamation gives rise to a few obvious free speech concerns
- Supreme Court has rightly upheld criminal defamation law
- India’s democratic success is due to the EC, and the triumph of trust over cynicism