sebi:EAD-2/AO/36/2012
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Facts / Headnote
Penalty imposed
Provisions invoked
- s. 15
- s. 15J
- s. 15H
Regulations
- Reg. 4
- Reg. 3
Parties
- Hitesh Madhusudan Thakkar
Holding
The Adjudicating Officer held that the Noticee violated Regulations 4(1) and 4(2)(a), (b) and (g) of the PFUTP Regulations by indulging in circular/reversal/synchronized trades and imposed a monetary penalty of Rs 3,00,000 under Section 15HA of the SEBI Act.
Full text
Page 2 of 10 2. SEBI has therefore, initiated adjudication proceedings under the provisions of the SEBI Act against the Noticee to inquire into and adjudge the alleged violations of the provisions of Regulations 4 (1), 4(2) (a), (b) and (g) of the SEBI (Prohibition of Fraudulent and Unfair trade Practices Relating to Securities Market) Regulations, 2003 (hereinafter referred to as the “PFUTP Regulations.
Page 3 of 10 Finance)bought 10,89,454 shares and sold 11,74,602 shares during the investigation period, thereby contributing 13.42% (buy side) and 14.47% (sell side). The Noticee allegedly indulged in circular/reversal/synchronized trades, and thus instrumental in creating artificial volumes in the scrip which distorted equilibrium of the shares of GAL
Page 4 of 10 Consideration of Issues, Evidence and Findings 9. I have carefully perused the charges made against the Noticee as mentioned in the SCN and the documents as available on record. In the instant matter the following issues arise for consideration and determination: a. Whether the Noticee has violated Regulations 4 (1), 4(2) (a), (b) and (g) of the PFUTP Regulations? b. Whether the Noticee is liable for monetary penalty prescribed under Section 15 HA of the SEBI Act for the aforesaid violation? c. If, yes what should be the quantum of monetary
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Source: SecMarx — sebi:EAD-2/AO/36/2012. 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.