sebi:BM/AO-96/2011
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Facts / Headnote
Allegations of manipulation under PFUTP Regulations dropped; violation of summons established and penalty of Rs 5,00,000 imposed under Section 15A(a) of SEBI Act.
Provisions invoked
- s. 15A
- s. 15
- s. 15H
- s. 15J
- s. 12
- s. 11C(2)
Regulations
- Reg. 7
- Reg. 3
- Reg. 6
- Reg. 8(1)
Parties
- Swarn Ganga Trading (P) 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), 11C(3) and 11C(5) of SEBI Act by failing to comply with three summonses, attracting penalty under section 15A(a).
Full text
Page 2 of 18 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 18 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 18 January 12, 2010 at SEBI, Eastern Regional Office (hereinafter referred to as “ERO”), Kolkata vide notice dated December 14, 2009. Mr. Pravin Panwar, Authorised Representative of Noticee (hereinafter refered to as “AR”) appeared and submitted that they will file a written reply on or before January 30, 2010.
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Source: SecMarx — sebi:BM/AO-96/2011. 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.