sebi:EAD-2/AO/29/2012
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Facts / Headnote
Violation established; penalty of Rs. 2,00,000 imposed under Section 15HA of the SEBI Act
Provisions invoked
- s. 15
- s. 15H
- s. 15J
Regulations
- Reg. 4
- Reg. 3
Parties
- Shri Sunil Purohit
Holding
The Noticee violated Regulations 4(1) and 4(2)(a), (b) and (g) of the PFUTP Regulations by executing synchronized and circular/reversal trades in TWPL. He was held liable under Section 15HA of the SEBI Act and a penalty of Rs. 2,00,000 was imposed.
Full text
Page 2 of 10 2. The role of the main brokers and clients who had traded heavily during the period under investigation in the scrip of TWPL was scrutinized. The Investigations revealed that certain entities, including Shri Sunil Purohit (hereinafter referred to as the ‘Noticee’), transacted in the shares of TWPL in a fraudulent manner that created false and misleading appearance of trading, artificial volume and price manipulation in the scrip.
Page 3 of 10 6. The SCN alleged that a group of clients and brokers, including the Noticee, had done synchronized trades among themselves on majority of days they traded on BSE. Such synchronized trades constituted 72% of the total quantity traded by the clients and 18.4% of the market volume. The Noticee is also alleged to have indulged in circular trading, reversal of trades and synchronized & structured trades along and in connivance with other clients and brokers.
Page 4 of 10 b) Does the violation, if any, on the part of the Noticee attract any penalty under Section 15HA of the SEBI Act? c) If yes, what should be the quantum of penalty?
You have read the preview. Create a free account to read the full order, track this party, and analyse it in Ontology.
Free accounts include 10 searches/day with full order access.
Source: SecMarx — sebi:EAD-2/AO/29/2012. 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.