sebi:BM/AO-55/2012

SEBI · SEBI · 2010-11-09 · Barnali Mujherjee, Adjudicating Officer

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Facts / Headnote

Noticee held liable for violation of Regulations 3(a),(b),(c),(d) and 4(1), 4(2)(a),(b),(e),(g) of SEBI PFUTP Regulations, 2003; penalty imposed under Section 15HA of SEBI Act, 1992

Provisions invoked

• s. 15
• s. 15H
• s. 15J

Regulations

• Reg. 3
• Reg. 4(1)
• Reg. 4(2)
• Reg. 3(a)
• Reg. 4(2)(e)
• Reg. 4(2)(g)
• Reg. 4(2)(b)

Parties

• Bharat Chandmal Jain

Holding

The Noticee, Bharat Chandmal Jain, was found to have violated Regulations 3(a),(b),(c),(d) and 4(1), 4(2)(a),(b),(e),(g) of the SEBI PFUTP Regulations, 2003 by executing circular, reversal, synchronized and structured trades with connected Mehta group entities in the scrip of Asian Star Company Limited, and was held liable for monetary penalty under Section 15HA of the SEBI Act.

Full text

_____________________________________________________________________________________ Bharat C Jain in the matter of Asian Star Company Limited                                                                                Page 2 of 27  connected had allegedly indulged in circular/reversal synchronized trading in such a  manner that led to creation of artificial volume in the scrips.

_____________________________________________________________________________________ Bharat C Jain in the matter of Asian Star Company Limited                                                                                Page 3 of 27  December  16,  2010  Noticee  was  given  one  month  time  to  reply  to  the  SCN.  However, no reply was received.

_____________________________________________________________________________________ Bharat C Jain in the matter of Asian Star Company Limited                                                                                Page 4 of 27  prudence  and  understanding  of  the  securities  markets.  It  is  further  submitted  that I cannot be expected to detect and perceive the intentions and objectives of  other entities or even know the identity and details of the counter party brokers  and their clients.  e. I deny that I am linked with Mehta group entities. The mere fact that I traded  through Triveni does not substantiate any allegations against me.  f. Undoubtedly  there  has  to  be  meeting  of  minds  to  execute  any  synchronized/  reversal trades. I do not know even a single entity of the said Mehta group. Just  because of the mere fact that Sunil Mehta and I have dealt in 25 common scrips  cannot form the basis of allegation that I am connected/ related to him.  g. I strongly deny that I fall in second category of that entity who not only operated  their own account but also funded the transactions of the others.  h. That  I  have  closed  my  account  with  my  broker  Triveni  and  do  not  have  the  relevant information and trade details.  i. That  I  have  entered  buy  orders  at  a  price  at  which  in  accordance  with  my  judgment  my  order  would  be  executed.  In  absence  of  any  knowledge  or  involvement of reversal/ structured/ synchronized or c

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