sebi:ID3/JDIL/AO/DRK/ASG/EAD3-35/2009
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Facts / Headnote
Penalty of Rs. 25,00,000 imposed on the noticee under Section 15HA of the SEBI Act for violating Regulations 4(1) and 4(2)(a), (b) and (e) of the PFUTP Regulations
Provisions invoked
- s. 15
- s. 15H
- s. 15J
Regulations
- Reg. 3
- Reg. 4(1)
- Reg. 31
Parties
- Samradha Finstock Pvt. Ltd.
Holding
The noticee, Samradha Finstock Pvt. Ltd., was found to have violated Regulations 4(1) and 4(2)(a), (b) and (e) of the PFUTP Regulations by executing synchronized, reversal and circular trades in the scrip of JDIL on BSE, creating artificial volume and manipulating prices, and a penalty of Rs. 25,00,000 was imposed under Section 15HA of the SEBI Act.
Full text
Page - 2 - of 12 September 02, 2005. BSE has also referred the matter for the consideration of SEBI vide its letter dated March 10, 2006.
Page - 3 - of 12 through various stock brokers. Samradha Finstock Pvt. Ltd. (hereinafter referred to as ‘the noticee’) was a major client dealing through the stock broker Indiabulls Securities Ltd. The stock brokers M R Share Broking Pvt. Ltd., Indiabulls Securities Ltd., Religare Securities Ltd., UTI Securities Ltd., Samurai Securities Pvt. Ltd., mainly dealt for these common/ connected clients. This group accounted for over 25% of the total traded volumes in the scrip. It was observed that these connected entities had entered into trades with each other throughout the period of examination and the majority of their trades appeared to be through synchronized orders. The Investigation Report alleged that the connected entities Indulged in reversal of trades in connivance with each other and were thus instrumental in creating artificial volumes and price rise in the scrip which distorted the market equilibrium. APPOINTMENT OF ADJUDICATING OFFICER
Page - 4 - of 12 8. In the SCN it was alleged that the noticee in collusion with certain brokers and clients had executed synchronized/ reversal/ circular trades on BSE in the scrip of JDIL, which resulted in creation of artificial volume, manipulation of the price of the scrip and distorting the market equilibrium during the investigation period from May 10, 2005 to September 02, 2005 and were in violation of Regulations Regulation 4(1) & 4(2) (a), (b) and (e) of the PFUTP Regulations. The SCN was returned undelivered by the Postal Authorities.
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Source: SecMarx — sebi:ID3/JDIL/AO/DRK/ASG/EAD3-35/2009. 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.