sebi:EAD-2/AO/43/2012
Facts / Headnote
Penalty imposed on the Noticee for violation of PFUTP Regulations and Broker Regulations
Provisions invoked
- s. 15
- s. 15H
- s. 15J
Regulations relied on
- SEBI (PFUTP) Regulations, 2003 — 4(1)
- SEBI (PFUTP) Regulations, 2003 — 4(2)(p)
- SEBI (Stock Brokers) Regulations, 1992 — 7
Parties
- M/s. DPS Shares and Securities Ltd.
Holding
The Noticee (DPS Shares and Securities Ltd.) violated Regulations 4(1) and 4(2)(p) of the PFUTP Regulations and Regulation 7 read with Clause A(1)-(5) of the Broker Regulations by issuing fictitious contract notes and facilitating manipulative trading in the scrip of PIL, and is liable for a monetary penalty of Rs. 1,00,000 under Section 15HA and Rs. 1,00,000 under Section 15HB of the SEBI Act, totalling Rs. 2,00,000.
Full text
Page 2 of 13 Jayachandbhai, Shri Shila Baburao Suryavanshi, Shri Dalsukhbhai Devisibhai Patel and Shri Navin Patel connected to each other one way or the other acted in concert and manipulated the market in the scrip of PIL. The Group was the major net purchasers of the scrip during the period of investigation. The Group transferred the shares bought from the market to various beneficiary accounts through off-market transactions who in turn sold the shares in the market.
Page 3 of 13 Brokers) Regulations, 1992 (hereinafter referred to as the “Broker Regulations”). Appointment of Adjudicating Officer
Page 4 of 13 and it should have advised its clients against continuing the said transactions in the said manner; or should have itself refrained from entering into such transactions but it failed to do so. The Noticee facilitated manipulative trading activities in the market in the shares of PIL despite a duty cast on it as an intermediary in the stock market and thereby violated Regulations 4(1) and 4 (2) (p) of the PFUTP Regulations and Regulation 7 read with Clause A (1), (2), (3), (4) and (5) of the Broker Regulations.
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Source: SecMarx — sebi:EAD-2/AO/43/2012. 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.