sebi:BM/AO-125/2010
Facts / Headnote
Violation of regulations 3(a), (b), (c), (d) and 4(1) of PFUTP Regulations, 2003 established; penalty of Rs. 2,00,000 imposed under section 15HA of SEBI Act
Provisions invoked
- s. 15
- s. 15H
- s. 15J
Regulations relied on
- SEBI (PFUTP) Regulations, 2003 — 3(a)
- SEBI (PFUTP) Regulations, 2003 — 3(b)
- SEBI (PFUTP) Regulations, 2003 — 3(c)
- SEBI (PFUTP) Regulations, 2003 — 3(d)
- SEBI (PFUTP) Regulations, 2003 — 4(1)
Parties
- Hitendra Chaturbhai Makwana
Holding
The Noticee, Hitendra Chaturbhai Makwana, violated regulations 3(a), (b), (c), (d) and 4(1) of the PFUTP Regulations, 2003 by acting as a link in the chain of off-market transfers that enabled company-connected entities to offload shares of Eltrol Ltd. in the market, thereby creating artificial volume. A penalty of Rs. 2,00,000 was imposed under section 15HA of the SEBI Act.
Full text
Page 2 of 19 lowest 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, Hitendra Chaturbhai Makwana, (hereinafter referred to as “Noticee”) received shares in the offmarket from 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 19 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-125/2010. 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.