sebi:BM/AO-61/2012
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Facts / Headnote
Violation found; penalty of Rs. 5,00,000 imposed under Section 15HA of SEBI Act
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
- Bhanwarlal Paliwal
Holding
The Noticee Bhanwarlal Paliwal violated Regulations 3(a), (b), (c), (d) and 4(1) and 4(2)(a), (b), (e) & (g) of PFUTP Regulations by executing synchronized, structured, circular/reversal trades with Mehta Group entities in Asian Star Company Limited and is liable to a penalty of Rs. 5,00,000 under Section 15HA of the SEBI Act.
Full text
_____________________________________________________________________________________ Bhanwarlal Paliwal in the matter of Asian Star Company Limited Page 2 of 38 connected had allegedly indulged in circular/reversal synchronized trading in such a manner that led to creation of artificial volume in the scrips.
_____________________________________________________________________________________ Bhanwarlal Paliwal in the matter of Asian Star Company Limited Page 3 of 38 till January 14, 2011 to file reply to the SCN. Noticee vide letter dated January 2, 2011 sought for the copies of annexure 2 to 5 of the SCN. Accordingly on January 12, 2011 Noticee was sent the aforesaid annexure. Thereafter on January 28, 2011 Noticee acknowledged the receipt of the annexure and sought extension of three weeks of time for filing reply to the SCN. Vide reply dated February 9, 2011 Noticee denied the charged leveled against him and inter alia submitted the following: a. That I am 73 year old a retired senior citizen residing in a small town Udaipur in Rajasthan and leading a very simple life. It may be noted that I am suffering from chronic heart problem, have undergone Neurosurgery, recently right leg's knee replaced and have been advised to not to take travel from past years. b. That I have never indulged in any kind of trading in the securities market and am unaware of any trading in the scrip of ASCL. c. That no alerts with regard to the synchronized and reversals in the scrip of ASCL have been provided to me. d. I deny that I have executed any transaction in the scrip of ASCL through broker Triveni. I submit that not even a single order was placed by me for the alleged transactions in the scrip of ASCL. I put S
_____________________________________________________________________________________ Bhanwarlal Paliwal in the matter of Asian Star Company Limited Page 4 of 38 i. I strongly deny being linked with the alleged other parties who traded in the scrip of ASCL through Sunil Mehta, Ajay Roongta, Manish Mathur or Triveni and forming the alleged group i.e. Mehta group and entering into synchronized/ reversal trades with these entities. My relationship with Sunil Mehta is on the basis of my submission that Sunil Mehta has opened my account with Triveni. On the basis of this relationship I am linked to various other clients of Triveni and others who have traded in the scrip of ASCL and have together formed a group. Such allegation is as vague as it can be and the same cannot be made as a basis for holding me liable for any manipulation as alleged. j. I deny that I have traded in the scrip of ASCL and have executed any synchronized and structured trades and I have never been part of Mehta group and have no link/ connection/ nexus/ with any of the alleged entities. Further it is submitted that no details of trading which were in the nature of reversal of trade/ circular trade has been provided to me. k. That these trades were never executed by me and it seems that the broker has done unauthorized trades in my account and same came to my knowledge when this matter was brought into my k
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Source: SecMarx — sebi:BM/AO-61/2012. 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.