sebi:BM/AO-26/2010
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Facts / Headnote
Penalty of Rs.3,50,000 imposed on the Noticee under section 15HA of the SEBI Act for violating Regulations 4(1), 4(2)(a), (b), (e) and (g) of the PFUTP Regulations; Noticee absolved of the charge under Regulation 4(2)(n).
Provisions invoked
- s. 15
- s. 15H
- s. 15J
Regulations
- Reg. 4
- Reg. 3
- Reg. 4(1)
- Reg. 4(n)
Parties
- Shagufta Investments Pvt. Ltd.
Holding
The Noticee was held to have violated Regulations 4(1), 4(2)(a), (b), (e) and (g) of the PFUTP Regulations by indulging in structured and reversal trades creating artificial volumes and liquidity in the scrip of MEL, and a penalty of Rs.3,50,000 was imposed under section 15HA of the SEBI Act. The Noticee was absolved of the charge under Regulation 4(2)(n) because it dealt as a client through its broker and not as an intermediary.
Full text
2 showed net sales of Rs.170.7 lacs and loss of Rs.2.80 lacs. For the year 2003-04, MEL achieved sales of Rs.162 lacs and loss of Rs.103.7 lacs.
3 SEBI (Prohibition of Fraudulent and Unfair Trade Practice relating to Securities Markets) Regulations, 2003 (hereinafter referred to as “PFUTP Regulations”). Consequently the alleged violations make the Noticee liable for monetary penalty under sections 15HA of Securities and Exchange Board of India Act, 1992 (hereinafter referred to as “SEBI Act”).
4 trades. It was further alleged that the Noticee, who was found related with the other trading entities, in connivance with each other executed circular trades over a large number of days. The extracts of the trade and order log showing the alleged trades were provided to the Noticee along with the SCN.
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Source: SecMarx — sebi:BM/AO-26/2010. 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.