sebi:BM/AO-57/2010
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Facts / Headnote
Penalty of Rs. 4,00,000 imposed under section 15A(a) for non-compliance with summons; allegation of market manipulation under regulations 3, 4(1), 4(2)(a), (b), (e) and (g) not established
Provisions invoked
- s. 15A
- s. 15
- s. 15H
- s. 15J
- s. 12
Regulations
- Reg. 7
- Reg. 3
- Reg. 6
- Reg. 8(1)
Parties
- Ankit Prachi Trading and Investment Ltd.
Holding
The Noticee did not violate regulations 3, 4(1), 4(2)(a), (b), (e) and (g) of PFUTP, but violated regulation 8(1) of PFUTP read with sections 11C(2), (3) and (5) of SEBI Act by failing to comply with three summonses, and is liable to penalty of Rs. 4,00,000 under section 15A(a) of SEBI Act.
Full text
Page 2 of 15 2. On analysis of the trading data obtained from CSE it was observed that the transactions of six brokers viz: Mukesh Dokania & Co., Rajendra Prasad Shah, Ahilya Commercial Pvt. Ltd., Bubna Stock Broking Services Ltd., N.M. Lohia & Co. and Shyam Lal Sultania, constituted 62% of the volume in the scrip of SCL. The role of the brokers and the entities who had traded in the scrip of SCL was scrutinized. It was alleged that through collusion with the brokers and their clients, shares of SCL were transacted in such a manner that led to creation of artificial volumes in the scrip and was designed to create a false market leading to significant price movement in the scrip.
Page 3 of 15 period. The Noticee acknowledged receipt of the summonses issued repeatedly but did not provide any information. Therefore, it was alleged that it had violated regulation 8(1) of SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Markets) Regulations, 2003 (hereinafter referred to as “PFUTP”) read with sections 11 C (2), (3) and (5) of Securities and Exchange Board of India Act, 1992 (hereinafter referred to as “SEBI Act”). Consequently, in respect of the alleged charges, the Noticee would be liable for monetary penalty section 15A (a) of SEBI Act.
Page 4 of 15 be not imposed on the Noticee under sections 15HA and 15A (a) of SEBI Act for the alleged violation specified in the said SCN.
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Source: SecMarx — sebi:BM/AO-57/2010. 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.