sebi:EAD-2/AO/58/2012
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Facts / Headnote
Penalty imposed on the Noticee for violations of PFUTP Regulations and Broker Regulations
Provisions invoked
- s. 15
- s. 15H
- s. 15J
Regulations
- Reg. 7
- Reg. 3
- Reg. 4
Parties
- M/s Galaxy Broking Ltd
Holding
The Noticee, M/s Galaxy Broking Ltd, was found to have violated Regulations 4(1) and 4(2)(a) & (e) of the PFUTP Regulations and Clauses A(1),(2),(3),(4) and (5) of the Code of Conduct under Regulation 7 of the Broker Regulations, and a total penalty of Rs. 1,75,000 was imposed (Rs. 1,50,000 under Section 15HA and Rs. 25,000 under Section 15HB of the SEBI Act).
Full text
Page 2 of 9 2. Investigation revealed that a group of entities connected to each other one way or the other and to TSWL namely Chandrakant Patel, Bharat Patel, Vintel Securities Pvt. Ltd, Mange Sharma, Jinprabhu Securities Pvt. Ltd, Manjula Jain, Umesh Kumar Thaker, MD Jain Cons. Pvt. Ltd, Care & Cure Int. Ltd, SIL Leasing & Ind. Fin. (P) Ltd and Vikas Bengani, had dealt in the scrip of TSWL in a fraudulent and manipulative manner during the investigation period that created artificial volume, false and misleading appearance of trading and price manipulation in the scrip. It further revealed that, M/s Galaxy Broking Ltd (hereinafter referred to as the 'Noticee') aided and abetted three of the above entities namely, Shri Bharat Patel, Shri Chandrakant Patel and Vintel Securities Pvt. Ltd in executing trades in the above manner in the scrip of TSWL as a broker. The Noticee allegedly failed to maintain complete and proper KYC forms of its clients .
Page 3 of 9 Act,1992 the alleged violation of the abovementioned provisions of PFUTP Regulations and Broker Regulations by the Noticee. SEBI vide Order dated January 04, 2012 appointed the undersigned as the AO.
Page 4 of 9 margin and credit available with it. All the pay-in/pay-out obligations were carried out on the due dates. There is no default in pay-in/pay-out obligations. (iv) Shri Rajesh Bachhraj Chauhan ceased to be its client in September 2004 and the KYC norms were not as strict as they are today. (v) The large orders put in were partially executed and the balance was withdrawn as the price changed. It has not done any proprietary trading and have no relations with the above clients other than client-broker relationship. They were not party to any off-market transactions and there were no
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Source: SecMarx — sebi:EAD-2/AO/58/2012. 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.