sebi:19525
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Facts / Headnote
Minor penalty imposed: suspension of certificate of registration for one month
Provisions invoked
- s. 19
Regulations
- Reg. 7
- Reg. 4
- Reg. 13(4)
- Reg. 6
- Reg. 4(b)
- Reg. 47
Parties
- M/s Pawankumar Parmeshwarlal Choudhary (SEBI Registration No. INB010018813)
Holding
The Noticee, broker M/s Pawankumar Parmeshwarlal Choudhary, was found to have executed 66 synchronized trades with Tropical Securities in the scrip of Prudential Pharmaceuticals Ltd. (PPL) in violation of Regulation 4(b) and (c) of the PFUTP Regulations, 1995 and Regulation 7 read with the Code of Conduct under Schedule II of the Stock Broker Regulations, 1992. SEBI imposed a minor penalty suspending the Noticee's certificate of registration for a period of one month.
Full text
DATE OF HEARING: 26.02.2007 APPEARANCES: FOR COMPANIES/ BROKERS: Shri. Pawankumar Choudhary, Proprietor Shri. R.K Panday, Manager. FOR SEBI: Mrs. Barnali Mukherjee, DGM, SEBI Shri. Vir Sahib Singh, Manager, SEBI Shri. Mohamed Rahaz P.M., Legal Officer, SEBI
(hereinafter referred to in short as “Noticee”) bearing SEBI Registration No. INB010018813, had executed synchronised trades with another broker M/s Tropical Securities and Investments Private Limited (hereinafter referred to in short as “Tropical”) It had received shares through off market transactions from the entities related to Tropical. 1.2 SEBI after considering the Investigation Report appointed an Enquiry Officer vide Order dated June 02, 2006 to enquire into the violations allegedly committed by the Noticee under the provisions of the Securities and Exchange Board of India (Stock Brokers and Sub-brokers) Regulations, 1992 (hereinafter referred to as “Stock Broker Regulations”) and Securities and Exchange Board of India (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulation, 1995 (hereinafter referred to as “PFUTP Regulations”) as also Securities and Exchange Board of India Act, 1992. 2.0 ENQUIRY PROCEEDINGS 2.1 The Enquiry Officer issued notice vide letter IVD/ID8/BM/SS/ PPL/71365/2006 dated July 13, 2006 communicating the violations alleged to have been committed by it, in terms of Regulation 6 (1) of the Securities and Exchange Board of India (Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002 (hereinafter referred to in short as “Enquiry Regulation”). 2.2 The Noticee replied to the show cause notice vide letter dated August 2, 2006 and submitted the following:
“I We have no role in rise or in fall in market price of scrip of PPL during the period July 9, 2001 to March 6, 2002. II. We refute that we had entered into any structured trades in the scrip with BSE member Tropical. The sale orders were placed on the BOLT system and it was open for anyone throughout India to punch such trade. The trades were executed at the then prevailing market price without knowing who the counterparty was.
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Source: SecMarx — sebi:19525. 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.