sebi:BM/AO-139/2010
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Facts / Headnote
Penalty imposed on Noticee under section 15HA of SEBI Act for violating regulations 3(b), 3(c), 3(d) and 4(2)(d) of SEBI PFUTP Regulations, 2003; not found guilty under regulation 4(2)(e)
Provisions invoked
- s. 15
- s. 15H
- s. 15J
Regulations
- Reg. 3
- Reg. 4(2)
- Reg. 4(2)(e)
- Reg. 4(2)(d)
Parties
- Amrut Securities Ltd
Holding
The Noticee, Amrut Securities Ltd, was held to have violated regulations 3(b), 3(c), 3(d) and 4(2)(d) of the SEBI PFUTP Regulations, 2003 by aiding and abetting manipulative trading in the scrip of NEL, and was imposed a penalty of Rs. 1,50,000 under section 15HA of the SEBI Act. The Noticee was not found guilty of violating regulation 4(2)(e) as no evidence of price manipulation by the Noticee was established.
Full text
Page 2 of 12 2006 (` 14.50 to ` 18.25) and the price of the scrip started falling from October 17, 2006 to reach a low of ` 10.60 by November 23, 2006 at BSE. On NSE the price opened at `. 13.50 on September 20, 2006 and touched high of `.19 on October 16, 2006. During this period no trading was observed in the scrip of NEL on ASE.
Page 3 of 12 6. From the bank account statement of Shri Shailesh of Union Bank of India, Rajkot for the period July 1, 2006 to November 30, 2006 it was found that fund of ` 2,79,55,000/- was credited from different sources in the account of Shri Shailesh and the same were transferred to member Ford Brother Capital Services Ltd’s account. It was observed that Amrut Securities Ltd (hereinafter referred to as “Noticee) a sub-broker of Galaxy Broking Ltd, transferred `.9 lakh on 06.10.2006 and `. 4 lakh on 20.10.206 to the account of Shri Shailesh which in turn was transferred by Shri Shailesh to the account of M/s. Ford Brothers Capital Services Ltd. Investigation observed that the amount of `.9 lakh in the account of Amrut Securities Ltd was received from Galaxy Broking Ltd. It was also observed that Anil Gandhi, director of Galaxy Broking Ltd was the introducer in the bank account of Shri Shailesh. Further Priti Gandhi, wife of Anil Gandhi and Amrutlal Gandhi father of Anil Gandhi were directors in Amrut Securities Ltd. It was alleged that the Noticee was connected to Shri Shailesh and the Noticee provided fund to Shri Shailesh and thereby aided and abetted for the alleged manipulative trading by Shri Shailesh in the scrip of NEL.
Page 4 of 12 the Noticee under section 15HA of SEBI Act for the alleged violation specified in the said SCN. The SCN was duly acknowledged by the Noticee.
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Source: SecMarx — sebi:BM/AO-139/2010. 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.