sebi:BM/AO-9/2010
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Facts / Headnote
Penalty of Rs.2,50,000 imposed under Section 15HA; violation of Regulation 4(2)(e) not established
Provisions invoked
- s. 15
- s. 15H
- s. 15J
Regulations
- Reg. 3
- Reg. 4
- Reg. 4(1)
- Reg. 4(2)
- Reg. 4(2)(a)
- Reg. 4(2)(e)
Parties
- Shri Dipak Kumar Shah
Holding
The Noticee violated Regulations 4(1) and 4(2)(a) of PFUTP by acting as a front entity and executing synchronized trades creating artificial volume, and is liable to penalty under Section 15HA of SEBI Act. The allegation under Regulation 4(2)(e) for price manipulation was not established.
Full text
Page 2 of 14 the lowest volume on July 01, 2005, when only one share was traded and highest being on August 26, 2005 when 1,36,70,180 shares were traded.
Page 3 of 14 by Adjudicating Officer) Rules, 1995 (hereinafter referred to as ‘Rules’) to inquire into and adjudge the alleged violations of SEBI Act committed by the Noticee.
Page 4 of 14 letter dated November 27, 2009 to appear on December 15, 2009 at SEBI, Head Office, Mumbai. The Noticee appeared and reiterated the submissions made on November 18, 2008. He also added that one Satishbhai traded along with Ashutosh O. Shah in his name. Subsequent to the hearing, a notice dated January 4, 2010 was issued to the Noticee through speed post, asking him to produce documents in support of his submissions made during the hearing. Further he was also provided with the copy of trade and order log giving details of synchronized trades and was asked to offer his comments on the same. The notice dated January 4, 2010 came back undelivered from the address where the hearing notice was delivered. Subsequently, the notice was delivered to the Noticee at the same address (which was the last available address) by SEBI Regional Office at Ahmedabad. However the Noticee did not make any further submissions to the above notice.
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Source: SecMarx — sebi:BM/AO-9/2010. 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.