sebi:BM/AO-31/2010
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Facts / Headnote
Noticee found guilty ex-parte and penalty imposed
Provisions invoked
- s. 15
- s. 15H
- s. 15J
Regulations
- Reg. 4
- Reg. 3
- Reg. 4(1)
- Reg. 200
- Reg. 4(2)(n)
Parties
- Shri Nirav M. Shah
Holding
The Noticee violated Regulations 4(1), 4(2)(a), 4(2)(b) and 4(2)(g) of the PFUTP Regulations, 2003 by executing synchronized/structured and circular/reversal trades in Aarti Drugs Ltd., Havells India Ltd., Lyka Labs Ltd. and Tasc Pharmaceuticals Ltd., but did not violate Regulation 4(2)(n); a penalty of Rs. 4,50,000 under Section 15HA of the SEBI Act was imposed.
Full text
Page 2 of 15 some of the brokers/sub-brokers 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 15 SHOW CAUSE NOTICE, HEARING AND REPLY 7. Show Cause Notice No. EAD-5/VSS/RK/126142/2008 dated May 21, 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 against the Noticee and penalty be not imposed on the Noticee under sections 15HA of SEBI Act for the alleged violation specified in the said SCN.
Page 4 of 15 11. The Noticee has not filed any further reply to the SCN dated May 21, 2008 after seeking extension. 12. After my appointment, in order to conduct an inquiry as per Rule 4 (3) of the Rules, the Noticee was granted an opportunity of hearing on March 04, 2010 at SEBI, Head Office, Mumbai, vide notice dated February 22, 2010, at the address 1/4, Angan Flats, Near Gokul Row House Satellite, Ahmedabad - 380015.The notice returned undelivered.
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Source: SecMarx — sebi:BM/AO-31/2010. 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.