Document Fragment View
Fragment Information
Showing contexts for: human errors in In Re : Taib Bank E.C. vs Unknown on 20 September, 2003Matching Fragments
3.1.2 The fund bought a total of 45, 000 shares of TELCO during 15th to 23rd July, 1999 and were gradually sold from 24th August 1999. As on 29th November 1999 there were 30, 000 shares to be sold. Through oversight, they sold 35, 000 shares on 22nd November in 3 lots (20000 through DSP Merrill, 10000 through Mafatlal and again 5000 through DSP Merrill). The last sale of 5000 shares was due to human error.
3.1.3 Based on the stock statement which showed 11, 500 shares of Hindustan Petroleum as on 29th November, 1999, the 4, 000 shares were erroneously sold, without taking into account pending sale. "The period was also quite confusing" as HPCL issued bonus shares during the period in question. While the ex-bonus date was 13th October, 1999, the bonus shares were received on 25th December, 1999.
3.1.6 The 'short sale' of the shares of DSQ Software was due to genuine human error, involving just 500 shares out of 10, 000.
3.2 The FII submitted that the fund has undertaken thousands of transactions during the period in question, instances of selling without checking stock were few and far between and that all such cases were genuine mistakes which mainly occurred due to a bonafide human error. The Bank further stated that there was never any intention to short sell in any of the cases cited.
11.0 The FII was also granted an opportunity of being heard in person on 1.9.2003. In the course of hearing, representative of the FII submitted that:
11.1 The six instances cited above were among thousands of transactions done by the FII and these were genuine transactions.
11.2 There were no second sales in the same scrips and the short sales were due to human error and were not intentional.
11.3 In all cases, there was no profit earned; on the other hand, there was loss.
11.4 The FII had not engaged in short selling; rather these were isolated incidents 11.5 the total value of the short sales done by them constitute less that 0.05% of the total value of the trades entered into by them.