sebi:ERO/SLPL/AO/DRK/MD/EAD-3/05/2009
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Facts / Headnote
Penalty imposed on the noticee for manipulative, fraudulent and unfair trade practices and for non-cooperation with investigation
Provisions invoked
- s. 15A
- s. 15
- s. 11C
- s. 11C(3)
Regulations
- Reg. 7
- Reg. 6
- Reg. 4(2)
- Reg. 8
Parties
- Scope Vyapar Private Limited
Holding
The Adjudicating Officer held that Scope Vyapar Private Limited violated Regulation 4(2)(a), 4(2)(e) and 8(1) of the PFUTP Regulations by engaging in manipulative, fraudulent and unfair trade practices and by failing to co-operate with the investigation, and imposed a penalty of Rs. 1,10,00,000.
Full text
Page 2 of 13 2 APPOINTMENT OF ADJUDICATING OFFICER. 2. I was appointed as the Adjudicating Officer subsequent to the transfer of Shri Biju S., vide order dated December 10, 2008, under section 15 I of SEBI Act, read with Rule 3 of Securities and Exchange Board of India (Procedure for Holding Inquiry and Imposing Penalties by Adjudicating Officer) Rules, 1995 (hereinafter referred to as ‘Rules’) to inquire into and adjudge under Section 15A and 15 HA of the SEBI Act, the violations of Regulation 4(2) (a) (e) & 8(1) of PFUTP Regulations. SHOW CAUSE NOTICE, HEARING AND REPLY
Page 3 of 13 3 4. Prohibition of manipulative, fraudulent and unfair trade practices (2) Dealing in securities shall be deemed to be a fraudulent or an unfair trade practice if it involves fraud and may include all or any of the following, namely:- (a) indulging in an act which creates false or misleading appearance of trading in the securities market; (e) any act or omission amounting to manipulation of the price of a security; Duty to co-operate, etc. 8. (1) It shall be the duty of every person in respect of whom an investigation has been ordered under regulation 7—
Page 4 of 13 4 (e) Statement of deliveries made to the broker and received from the broker. (f) To furnish the details of relevant bank transactions, evidencing the receipts and payments. (g) Details of all off market transactions during the period from January 1, 2005 to September 30, 2005. (h) Details of relationship with the promoters/directors of the company and with the brokers dealing in the scrip.
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Source: SecMarx — sebi:ERO/SLPL/AO/DRK/MD/EAD-3/05/2009. 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.