sebi:IVD/WOL-PS/AO/DRK/ASG/EAD3/152-2009/55-2010
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Facts / Headnote
Ex-parte penalty imposed
Provisions invoked
- s. 15
- s. 15H
- s. 15J
Regulations
- Reg. 3
- Reg. 4(1)
- Reg. 199
- Reg. 31
Parties
- Smt. Parul Shah
Holding
The noticee violated Regulations 3, 4(b) of PFUTP Regulations, 1995 read with Regulations 4(1), 4(2)(a), (b) and (g) of PFUTP Regulations, 2003 by executing synchronized/structured/circular non-genuine trades. A penalty of Rs. 1,00,000 under Section 15HA of the SEBI Act, 1992 was imposed ex-parte.
Full text
Page 2 of 13 selling clients in the scrip were connected /related with each other, with WOL and a certain group of entities called the Parklight Group. WOL appears to 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 13 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/ structured/ circular/ reversal in nature. One of the groups was identified as consisting of: a. The stock broker Jitendra Harjivandas trading for the client Harish Kapadia; b. Sub-broker Vijay J Thakkar through main stock broker VSE Stock Services Ltd. trading for the client Smt. Parul Shah (hereinafter referred to as ‘the noticee’); c. Sub broker Kankeshwari Securities Pvt. Ltd through main stock broker Action Financial Services (India) Ltd. trading for the client Piyush M Shah; d. Pilot Credit Capital Ltd. trading for the client Piyush M Shah; e. Pennisular Capital Market Ltd. trading for the client Nilesh H Bhuta.
Page 4 of 13 provisions of the Adjudication Rules by Registered Post Acknowledgment Due requiring her to show cause as to why an inquiry should not be held against her and why penalty, if any, should not be imposed on her under Section 15HA of the SEBI Act in respect of the violations alleged to have been committed by the noticee. However, the SCN was returned undelivered by the postal authorities.
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Source: SecMarx — sebi:IVD/WOL-PS/AO/DRK/ASG/EAD3/152-2009/55-2010. 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.