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The Securities Appellate Tribunal (SAT) has upheld the charges of fraudulent and unfair stock market dealings against OPG Securities but lowered the penalty imposed on the broker by market regulator Sebi to Rs 2 lakh.
While lowering the fine from Rs 6.5 lakh to Rs 2 lakh, the tribunal consented to Sebi's charges that OPG Securities violated regulations related to prohibition of fraudulent and unfair trade practices and stock broker's norms.
"The amount shall be deposited by the appellant within six weeks from the date of receipt of a copy of this order," the Tribunal said in its order date June 21.
In the peculiarity of facts and circumstances of the case, SAT said, that it was inclined to uphold legality of the impugned order passed by Sebi in April.
"However, the Tribunal strongly feel that penalty imposed on the appellant is on a higher side. As such taking a lenient view the penalty (is) reduced to Rs 2 lakh," it added.
In April, the market watchdog had imposed a consolidated penalty of Rs 6.5 lakh on the stock broker for the violation of Sebi's regulation on prohibition of fraudulent and unfair trade practices relating to securities market alongwith violation of conduct for stock brokers prescribed in Sebi's regulations.
The Securities and Exchange Board of India (Sebi) had alleged that stock broker had violated these norms while dealing in the shares of Edserv Sofsystems Ltd in March 2009.
