sebi:IVD/WOL-SB/AO/DRK/ASG/EAD3/214-2009/118-2010
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Facts / Headnote
Violation found; penalty imposed
Provisions invoked
- s. 15
- s. 15H
- s. 15J
Regulations
- Reg. 3
- Reg. 4(1)
- Reg. 15
- Reg. 199
Parties
- Shri Sanjay Biyani
Holding
The noticee violated Regulations 3, 4(b) of PFUTP Regulations 1995 read with Regulations 4(1) and 4(2)(a), (g) and (n) of PFUTP Regulations 2003 and the sub-broker Code of Conduct by executing synchronized/structured reversal trades creating artificial volume in WOL. A consolidated penalty of Rs 1,50,000 was imposed under Sections 15HA and 15HB of the SEBI Act.
Full text
Page 2 of 14 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% 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 clients and stock brokers 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 14 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 amongst the group were synchronized/ structured/ circular/ reversal in nature. One of the groups was identified as consisting of: a. Sub-broker Sunil Shares & Stock Brokers Pvt. Ltd. (through stock broker MPSE Securities Ltd.) trading for client Shri Abhishek Khare; b. Sub- broker Sanjay Biyani (through stock broker MPSE Securities Ltd.) trading in his own account (hereinafter referred to as ‘the noticee’).
Page 4 of 14 provisions of the Adjudication Rules by Registered Post Acknowledgment Due requiring him to show cause as to why an inquiry should not be held against him and why penalty, if any, should not be imposed on him under Section 15HA and Section 15 HB of the SEBI Act in respect of the violations alleged to have been committed by the noticee.
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Source: SecMarx — sebi:IVD/WOL-SB/AO/DRK/ASG/EAD3/214-2009/118-2010. 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.