sebi:EAD-9/SM/81/2018-19
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Facts / Headnote
Noticee held to have violated Regulations 3(a), 4(1), 4(2)(a), 4(2)(b) and 4(2)(g) of PFUTP Regulations and held liable for penalty under Section 15HA of SEBI Act, 1992, directed to pay penalty within 45 days.
Provisions invoked
- s. 15
- s. 15H
- s. 15J
- s. 24
Regulations
- Reg. 3
- Reg. 200
- Reg. 3(a)
Parties
- Sunil Purohit
Holding
The Noticee, trading through Vijay Bhagwandas Shah, executed circular/synchronized trades in Parsoli Corporation Ltd in connivance with other brokers/clients creating artificial volume and false market, thereby violating Regulations 3(a), 4(1), 4(2)(a), (b) and (g) of PFUTP Regulations and attracting penalty under Section 15HA.
Full text
In the matter of Parsoli Corporation Ltd Page 2 of 24 BSE.It was alleged that the Noticee was involved in circular trades in the shares of PCL in collusion with other entities/clients and stock brokers viz. M/s SPJ Stock Brokers Pvt. Ltd., M/s. Vijay Bhagwandas Shah, M/s Joindre Capital Services Ltd., M/s S. P. Jain Securities Pvt. Ltd., M/s Acumen Capital Market (India) Ltd. (formerly Peninsular Capital Market Ltd.), M/s Galaxy Broking Ltd., M/s Samruddhi Stock Brokers Ltd., M/s VSE Stock Services Ltd., M/s Insight Share Brokers Pvt. Ltd. and M/s Shreehari Hira Stock Broking Pvt. Ltd. (formerly known as M/s. Harikishan Hiralal). It was alleged that these brokers purchased and sold 31,34,232 shares during the IP. It was alleged that majority of trades amongst the above brokers were executed where buy and sell orders were placed within a gap of one minute of each other, out of which 10% of orders were synchronized as the rate and quantity of buy and sell
In the matter of Parsoli Corporation Ltd Page 3 of 24 “one of my acquaintance informed me that SEBI had issued Notice of Hearing dated July 07, 2017 to the aforesaid address and could not be delivered and it is showing in unserved at SEBI website. I lost my mother in April and I had to look after my father who is also not keeping in good health from last 2 years. I need to go to hospital constantly for his treatment. Perhaps, in my absence the Notice of hearing had remained undelivered.
In the matter of Parsoli Corporation Ltd Page 4 of 24 10.2. AR also has submitted that I have never executed any transaction in the said scrip. I am not remembering that I had open any account with the Member Broker Shri Vijay Bhagawandas Shah. I am very much sure that someone has misused my name and executed trades in the said scrip by opening illegal account with the said member broker which was not difficult at that time.
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Source: SecMarx — sebi:EAD-9/SM/81/2018-19. 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.