sebi:EAD-2/DSR/KM/122-127/2014
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Facts / Headnote
Penalty imposed on Noticees 1, 2 and 6; allegations against Noticees 3, 4 and 5 not established
Provisions invoked
- s. 15
- s. 15H
- s. 15J
Regulations
- Reg. 7
- Reg. 9(f)
- Reg. 3
- Reg. 3(a)
Parties
- Sundeep Credits Pvt. Ltd. (Noticee No. 1)
- Nilkanth Dealers Pvt. Ltd. (Noticee No. 2)
- Sunil Kumar Manohar Lal Jain / Sunil Kumar Manohar Lal Jain Huf (Noticee No. 3)
- Sadhna Doshi (Noticee No. 4)
- Ritu Doshi (Noticee No. 5)
- Indo Thai Securities Limited (Noticee No. 6)
Holding
Noticees 1 and 2 violated PFUTP Regulations by indulging in self trades that created artificial volume in the scrip of MFL, and Noticee 6 (their broker) violated Clause A(2) of the Code of Conduct read with Regulation 9(f) of the Broker Regulations. Penalties of Rs. 5,00,000 each were imposed on Noticees 1 and 2 under Section 15HA and Rs. 5,00,000 on Noticee 6 under Section 15HB; allegations against Noticees 3, 4 and 5 were not established.
Full text
Page 2 of 15 2), Sunil Kumar Manohar Lal Jain (Noticee No. 3), Sadhna Doshi (Noticee No. 4) and Ritu Doshi (Noticee No. 5) had entered into self trades on BSE and NSE and that on all the occasions where self trades were executed, Indo Thai Securities Limited (Noticee No. 6) was the broker on both buy side and sell side. Therefore, it is alleged that they had entered into self trades which created artificial volume in the scrip, leading to false and misleading appearance of trading in the scrip in the securities market.
Page 3 of 15 Notice, Reply & Personal Hearing: 5. A notice dated October 15, 2013 (hereinafter referred to as the „SCN‟) was issued to the Noticees in terms of Rule 4 of the Adjudication Rules requiring them to show cause as to why an inquiry should not be held for the alleged violations. In the interest of natural justice and in order to conduct an inquiry as per Rule 4 (3) of the Adjudication Rules, vide letter dated March 05, 2014, an opportunity of personal hearing was granted to the Noticees on March 21, 2014.
Page 4 of 15 9. The Noticee No. 4 vide letter dated November 07, 2013 requested for inspection of documents relied in the SCN and vide letter dated January 16, 2014, an inspection was granted to the Noticee. The Noticee availed the inspection of documents on February 10, 2014 and filed its reply to the SCN vide letter dated March 08, 2014 and appeared before me on March 21, 2014 and reiterated the submissions made vide its reply to the SCN. The Noticee then sought another opportunity of hearing in the matter and the same was granted on April 11, 2014, wherein, the Noticee reiterated the submissions made in the said reply to the SCN.
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Source: SecMarx — sebi:EAD-2/DSR/KM/122-127/2014. 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.