sebi:DSR/AO-08/2009
Facts / Headnote
Noticee held guilty of FUTP and Broker Regulations violations; monetary penalty of Rs. 3,00,000 imposed
Provisions invoked
- s. 15
- s. 15J
Regulations relied on
- SEBI (PFUTP) Regulations, 2003
- SEBI (Stock Brokers) Regulations, 1992
Parties
- Vijay Bhagwandas & Co.
Holding
Vijay Bhagwandas & Co. was held guilty of violating regulations 4(1), 4(2)(a), (b), (g) and (n) of FUTP Regulations and Regulation 7 read with Clauses A(1) to A(5) of Code of Conduct under Broker Regulations for circular/synchronized trading in TWPL, and a monetary penalty of Rs. 3,00,000 was imposed under sections 15HA and 15HB of SEBI Act.
Full text
Page 2 of 12 1.2. The investigations revealed the following: a) The Company was incorporated in 1992 and has its Registered Office at Survey No. 251/2, Valsad Falia, Near Jain Temple, Dadra & Nagar Haveli. b) The scrip was traded for 29 days on NSE, wherein the price fell from Rs.52.40 on April 1, 2004 to Rs.41.00 as on April 30, 2004 and then rose to Rs.44.65 as on May 14, 2004. c) The scrip was traded for 23 days on BSE, wherein the price of the scrip moved from Rs 49.45 to Rs. 53.15 during April 07, 2004 till April 20, 2004 and then the price came down to Rs. 40.95 on April 30, 2004 and there after moved in the range of Rs. 42.90 to Rs. 48.05 till May 11, 2004. d) A group of brokers and clients engaged in circular and synchronized trading in the scrip. The time difference between the transactions was very less and this synchronization of trades created artificial volume in the scrip. e) Vijay Bhagwandas and Co., (hereinafter to be referred as the “noticee”) was one of the brokers who traded in the scrip on its own account and on behalf of its client Tejash D Ghelani.
Page 3 of 12 inquire into and adjudge the alleged violations as mentioned in the order. Pursuant to the transfer of Shri Amit Pradhan to NRO, the undersigned was appointed as Adjudicating Officer vide order dated July 19 2007.
Page 4 of 12 a) Whether the noticee has violated the provisions of regulations 4(1), 4(2) (a), (b), (g) and (n) of FUTP Regulations?
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Source: SecMarx — sebi:DSR/AO-08/2009. 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.