sebi:BM/AO-111/2010
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Facts / Headnote
Penalty imposed on the Noticee for violating PFUTP Regulations
Provisions invoked
- s. 15
- s. 15H
- s. 15J
Regulations
- Reg. 3
- Reg. 4
- Reg. 4(1)
- Reg. 200
- Reg. 4(2)(n)
Parties
- Modi Hobart Ltd.
Holding
The Noticee, Modi Hobart Ltd., was found guilty of violating regulations 4(1), 4(2)(a), 4(2)(b) and 4(2)(g) of the PFUTP Regulations 2003 for executing synchronized/structured and circular/reversal trades in Aarti Drugs Ltd., Havells India Ltd and Lyka Labs Ltd, and a penalty of Rs. 3,50,000 was imposed under section 15HA of the SEBI Act. The Noticee was not found guilty of violating regulation 4(2)(n) as it was a client and not an intermediary.
Full text
Page 2 of 14 and their clients had indulged in synchronization of deals/circular trading in these scrips in such a manner that led to creation of artificial volumes.
Page 3 of 14 dated March 05, 2009 and the same was affixed on March 28, 2009 as per the report received from Northern Regional Office.
Page 4 of 14 11. A second opportunity of hearing was provided to the Noticee on July 04, 2010 at SEBI, Head Office, Mumbai, vide hearing notice dated June 17, 2010. The said notice was sent at the address 4, Community Centre, New Friends Colony New Delhi – 65 which was obtained earlier from the website of Ministry of Corporate Affairs. The said notice was acknowledged however, the Noticee failed to appear and also failed to submit their reply to the SCN.
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Source: SecMarx — sebi:BM/AO-111/2010. 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.