sebi:IVD/WOL/AO/DRK/ASG/EAD3-66/2009
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Facts / Headnote
Ex-parte penalty of Rs. 1,00,000 imposed on the noticee under Section 15HA of the SEBI Act, 1992
Provisions invoked
- s. 15
- s. 15H
- s. 15J
Regulations
- Reg. 3
- Reg. 4(1)
- Reg. 199
- Reg. 31
Parties
- Devang H. Dedia
Holding
The noticee violated Regulations 3, 4(b) of the PFUTP Regulations, 1995 read with Regulations 4(1), 4(2)(a), (b) and (g) of the PFUTP Regulations, 2003 by executing synchronized/structured/circular/reversal trades in the scrip of WOL creating artificial volume, and a penalty of Rs. 1,00,000 under Section 15HA of the SEBI Act was imposed.
Full text
Page 2 of 12 selling clients in the scrip were connected /related to each other and with WOL and with a certain group of entities called the Parklight Group. WOL appears to be a Parklight group company. The volumes in the scrip were created artificially amongst these entities and they contributed to almost 80 per cent of the total market volumes during the entire period of investigation. Self trades, circular trading synchronized/ structured trades and reversal of trades amongst various other members were also observed with almost negligible deliverable position thus contributing to the volumes in the scrip. Based on the above facts, SEBI conducted an investigation relating to buying, selling or dealing in the shares of WOL for the period from January 01, 2003 to October 23, 2003 (hereinafter referred to as the ‘Investigation Period’).
Page 3 of 12 6. The IR observed that in the pre Stock Split Period several groups of clients and stock brokers had traded significantly in the scrip and that the trades executed among the group were synchronized/ circular/ reversal in nature. One of the groups was identified as consisting of: a. Devang H. Dedia (hereinafter referred to as ‘the noticee’) trading through the stock broker Refco Sify Securities through sub broker JTB Financial Services Pvt. Ltd. b. Saurabh Pravin Shah trading through the stock broker Pranav Securities c. Krishan Agarwal trading through the stock broker Sanchay Fincom Ltd., and d. Shrawankumar Gajanand Goyal trading through the stock broker Jitendra Bhabhera
Page 4 of 12 the provisions of the Adjudication Rules by Registered Post Acknowledgment Due requiring it to show cause as to why an inquiry should not be held against it and why penalty, if any, should not be imposed on it under Section 15HA of the SEBI Act in respect of the violations alleged to have been committed by the noticee. Proof of delivery of the SCN is available on record.
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Source: SecMarx — sebi:IVD/WOL/AO/DRK/ASG/EAD3-66/2009. 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.