BackSC rejects Angel Broking appeal against penalty for self-trading
In December 2013, Sebi had fined Angel Broking Rs30 lakh for so-called self-trading on two days in 2009
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New Delhi: The Supreme Court on Thursday rejected a petition by Angel Broking Pvt. Ltd challenging a decision of market regulator Securities and Exchange Board of India (Sebi) which had fined it for violating stockbroker norms.
In December 2013, Sebi had fined Angel Broking ₹ 30 lakh for so-called self-trading on two days in 2009. The broking firm was found buying shares of Sterling Green Woods Ltd and selling them at a lower price, contrary to normal market practice. Angel Broking moved the Securities Appellate Tribunal, which upheld the Sebi order on 10 October 2014, after which it went to the Supreme Court.
A bench of justices J.S. Khehar and S.A. Bobde questioned the motive behind the mode of transaction. “Why would you (do this), if not for manipulation," asked justice Khehar.
The SAT order found that Sebi was “justified in holding that self-trades were executed with ulterior motives", as these self-trades were “not normal trades".
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