https://www.taxtmi.com/caselaws?id=262370 A stock broker was found responsible for manipulative trades executed through its branch terminal by an employee who acted as branch in-charge and terminal operator. The trades in an illiquid scrip were identified as synchronized, circular and reversal trades carried out over a long period for connected clients, showing manipulation of volume and price. The exchange rule making a member fully responsible for the acts and omissions of agents and employees prevailed over the general rule limiting employer liability for an employee's tortious act. The broker's failure to detect the pattern and the breach of the prescribed code of conduct justified the penalty under the SEBI framework. en-us Tue, 14 Oct 2014 00:00:00 +0530 Sat, 08 Aug 2015 06:13:43 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=262370 A stock broker was found responsible for manipulative trades executed through its branch terminal by an employee who acted as branch in-charge and terminal operator. The trades in an illiquid scrip were identified as synchronized, circular and reversal trades carried out over a long period for connected clients, showing manipulation of volume and price. The exchange rule making a member fully responsible for the acts and omissions of agents and employees prevailed over the general rule limiting employer liability for an employee's tortious act. The broker's failure to detect the pattern and the breach of the prescribed code of conduct justified the penalty under the SEBI framework. Case-Laws Companies Law Tue, 14 Oct 2014 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=262370