sebi:BM/AO-108/2010
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Facts / Headnote
Penalty of Rs. 4,00,000 imposed under Section 15HA of SEBI Act
Provisions invoked
- s. 15
- s. 15H
- s. 15J
Regulations
- Reg. 3
- Reg. 4(1)
- Reg. 3(a)
Parties
- T. H. Vakil Shares and Securities Pvt. Ltd.
Holding
The Noticee violated regulations 3(a), (b), (c), (d) and 4(1) of PFUTP by acting as a conduit for off-market transfers that created artificial volume, and is liable to a monetary penalty of Rs. 4,00,000 under section 15HA of the SEBI Act.
Full text
Page 2 of 18 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 18 3. It was observed from the investigation that one of the entities, T. H. Vakil Shares and Securities Pvt. Ltd., (hereinafter referred to as “Noticee”) was transferred shares by entities allegedly connected to EL or the directors 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
Page 4 of 18 SHOW CAUSE NOTICE, HEARING AND REPLY 6. Show Cause Notice No. EAD-5/VSS/JR/124557/2008 dated May 2, 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-108/2010. 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.