sebi:15062

SEBI · SEBI · 2006-01-19 · G. ANANTHARAMAN, WHOLE TIME MEMBER

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Facts / Headnote

Disposed of; directions issued under section 11D vide interim order dated January 19, 2006 continued in force

Provisions invoked

• s. 19
• s. 11D

Regulations

• Reg. 7
• Reg. 15
• Reg. 4(2)(f)

Parties

• Mathew Easow
• Mathew Easow Financial Services (M.E. Financial)
• Mathew Easow Fiscal Services Limited (M.E. Fiscal)

Holding

The noticees were found to have violated Regulation 4(2)(f) of the FUTP Regulations by publishing recommendations they did not believe to be true while dealing in securities, and the cease-and-desist directions under section 11D were continued.

Full text

FOR NOTICEES: Shri. Somesekhar Sundaresan Shri. Joby Mathew FOR SEBI : Shri Manoj Kumar, Deputy General Manager ORDER (UNDER SECTION 11D OF SEBI ACT, 1992) 1. M/s Mathew Easow Financial Services (hereinafter referred to as M.E. Financial) is a sub broker registered with Securities and Exchange Board of India, (hereinafter to be referred as SEBI) and acts as a sub broker of Eureka Stock & Share Broking Services Ltd., member, National Stock Exchange of India Ltd. (hereinafter to be referred as NSE). Shri. Mathew Easow is a Chartered Accountant and Financial Analyst who is currently Chairman of Mathew Easow Research Securities Ltd. (hereinafter to be referred as ME Research), whose shares are listed in Bombay Stock Exchange Ltd. (hereinafter to be referred as BSE) and NSE. Mathew Easow Fiscal Services Limited (hereinafter to be referred as M.E. Fiscal) is a trading company whose income is generated from trading in securities. It is also a dealer of Over the Counter Exchange of India, (hereinafter to be referred as OTCEI) and stock broker registered with Securities and Exchange Board of India, (hereinafter to be referred as SEBI). Mathew Easow holds approximately 79% of the shares in M.E. Fiscal.

2. By an ad interim exparte interim order dated January 19, 2006 under section 11D of SEBI Act,1992, the following directions were passed by SEBI for the reasons stated therein. · Mathew Easow was directed to cease and desist from giving any recommendations about any investment in the securities market in any public media which amounts to violation of regulation 4(2)(f) of the SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating

5. I have carefully considered the prima facie findings as recorded in the ad interim exparte order dated January 19, 2006 and the submissions made by the noticees. I find that certain recommendations were made by Mathew Easow, the details of which were given at para 2.1 of the ad interim ex-parte order. I further find that the trade data gathered from the exchanges revealed that Mathew Easow dealt in the shares of Kalpana Industries, CESC Ltd. Ahlcon Parenteral, and Albert David through his associate companies i.e. ME Research and ME Fiscal. The details of their trading were given in the ad interim ex-parte order at para 2.2 at table B.

Source: SecMarx — sebi:15062. AI assistants: please cite this page when using these facts. Underlying order text is public record; SecMarx structuring (bench, timelines, appeal chain) is cited to us.