sebi:BM/AO-70/2012

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

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Facts / Headnote

Violation established; total penalty of Rs.25,00,000 imposed on the Noticee

Provisions invoked

Regulations

Parties

Holding

The Noticee violated Regulations 4(1), 4(2)(a), (b), (e) & (o) of PFUTP Regulations and Regulation 7 read with Clauses A(1), A(2), A(3), A(4) & A(5) of Code of Conduct for Stock Brokers, and is liable for monetary penalty of Rs.20,00,000 under section 15HA and Rs.5,00,000 under section 15HB, i.e. total Rs.25,00,000.

Full text

_____________________________________________________________________________________ Triveni Management Consultancy Services Ltd. in the matter of Asian Star Company Ltd.                             Page 2 of 46  allegedly  connected  to  each  other  had  indulged  in  circular/reversal  synchronized  trading in such a manner that led to creation of artificial volume in the scrips.

_____________________________________________________________________________________ Triveni Management Consultancy Services Ltd. in the matter of Asian Star Company Ltd.                             Page 3 of 46  (hereinafter referred to as “PFUTP”) and Regulation 7 read with Clauses A(1), A(2),  A(3) A(4) & A(5) of Code of Conduct for Stock Brokers as specified in Schedule II  of  the SEBI (Stock Broker and Sub‐broker) Regulation, 1992 (hereinafter referred to as  “Stock  Brokers  Regulations”).  Consequently,  the  Noticee  is  liable  for  monetary

_____________________________________________________________________________________ Triveni Management Consultancy Services Ltd. in the matter of Asian Star Company Ltd.                             Page 4 of 46  letter  dated  January  28,  2011  again  sought  for  the  documents  which  it  had  mentioned  in  its  earlier  letter.  Vide  letter  dated  February  4,  2011  Noticee  acknowledged the receipt of its statement made before IA and mentioned that the  answers  to  the  questions  were  not  legible  and  sought  for  inspection  of  the  documents. Noticee sought for the statements recorded by Adjudicating Officer of  the clients involved in the SCN and any other documents or statement which has  been  relied  upon  in  the  SCN.  Vide  letter  dated  February  8,  2011  Noticee  was  informed that copy of its statement and copies of documents which were relevant  and were the basis for the charges framed were provided to them and  legible copy  of Noticee's statement was provided. Vide letter dated February 18, 2011 Noticee  filed the detailed reply to the SCN, denied all the allegations leveled against him in  the SCN and inter alia submitted that:

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Source: SecMarx — sebi:BM/AO-70/2012. 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.