sebi:EAD-2/AO/12/2013-14
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Facts / Headnote
Penalty imposed on the Noticee for aiding and abetting fraudulent and manipulative trades
Provisions invoked
- s. 15
- s. 15H
- s. 15J
Regulations
- Reg. 7
- Reg. 3
- Reg. 4
Parties
- Ramniklal Mohanlal Capital Markets Ltd.
Holding
The Noticee, Ramniklal Mohanlal Capital Markets Ltd., was held liable for aiding and abetting its client Renu Paliwal (a Mehta Group entity) in executing fraudulent and manipulative synchronized/structured/circular trades that created artificial volumes and influenced prices in eight scrips, in violation of PFUTP Regulations and the Code of Conduct for stock brokers. A total penalty of Rs. 2,00,000/- was imposed (Rs. 1,00,000 under Section 15HA and Rs. 1,00,000 under Section 15HB of the SEBI Act).
Full text
Page 2 of 18 2. During the period for which the scrips were investigated, there was huge change in price of the scrip. The volume of trade and the change in price of each of the aforesaid companies on BSE are mentioned below.
Page 3 of 18 related/connected/linked to each other and they together form a group (hereinafter collectively referred to as “Mehta Group”).
Page 4 of 18 aforesaid provisions of the PFUTP Regulations and Broker Regulations, alleged to have been committed by the Noticee. Consequent upon transfer of Shri Satya Ranjan Prasad the undersigned has been appointed as the Adjudicating Officer vide order dated May 22, 2012. Show Cause Notice, Reply and Personal Hearing
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Source: SecMarx — sebi:EAD-2/AO/12/2013-14. 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.