sebi:BM/AO-107/2010
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Facts / Headnote
Penalty imposed on the Noticee for violation of PFUTP Regulations
Provisions invoked
- s. 15
- s. 15H
- s. 15J
Regulations
- Reg. 3
- Reg. 4(1)
- Reg. 3(a)
Parties
- Karni Vijaysingh Jagdishsingh Rathore
Holding
The Noticee was found to have violated regulations 3(a), (b), (c), (d) and 4(1) of the PFUTP Regulations, 2003 by participating in off-market transfers of shares of Eltrol Ltd. that were subsequently sold in the market through synchronized trades, thereby creating artificial volume, and was imposed a penalty of Rs. 2,50,000 under section 15HA of the SEBI Act.
Full text
Page 2 of 19 volume on July 01, 2005, when only one share was traded and highest being on August 26, 2005 when 1,36,70,180 shares were traded.
Page 3 of 19 3. It was observed from the investigation that one of the entities, Karni Vijaysingh Jagdishsingh Rathore, (hereinafter referred to as “Noticee”) received 6,56,800 shares in off-market from Charu Niraj Sanghvi, an entity connected to the director of EL. These shares were offloaded in the market which allegedly created volume in the market. In view of the above it was alleged that the Noticee violated regulations 3(a), (b), (c), (d) and 4 (1) of SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Markets) Regulations, 2003 (hereinafter referred to as “PFUTP”) and consequently, liable for monetary penalty under section 15HA of Securities and Exchange Board of India Act, 1992 (hereinafter referred to as “SEBI Act”).
Page 4 of 19 SHOW CAUSE NOTICE, HEARING AND REPLY 6. Show Cause Notice No. EAD-5/VSS/JR/124071/2008 dated April 28, 2008 (hereinafter referred to as “SCN”) was issued to the Noticee under rule 4(1) of the Rules to show cause as to why an inquiry should not be held and penalty be not imposed under section 15HA of SEBI Act for the alleged violation specified in the said SCN.
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Source: SecMarx — sebi:BM/AO-107/2010. 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.