sebi:IVD-ID-8/WOL/FNS/AO/DRK/ASG/EAD3/143-2009/46-2010
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Facts / Headnote
Penalty imposed on the noticee for fraudulent and unfair trade practices
Provisions invoked
- s. 15
- s. 15H
- s. 15J
Regulations
- Reg. 3
- Reg. 4(1)
- Reg. 199
- Reg. 31
Parties
- Falguni N. Shah
Holding
The noticee Falguni N. Shah was found to have violated Regulations 3 and 4(b) of the FUTP Regulations 1995 read with Regulations 4(1), 4(2)(a), (b) and (g) of the PFUTP Regulations 2003 by executing reversal/circular trades that were synchronized/structured in nature in the scrip of WOL, and a penalty of Rs. 2,50,000 was imposed under Section 15HA of the SEBI Act.
Full text
Page 2 of 13 alert. The period of investigation was January 01, 2003 to October 30, 2003. The major Observations of BSE were that the major buying and 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 high of Rs 3.15 on October 10, 2003 and then came down to Rs 1.89 on October 30, 2003. 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 the sub broker Rajesh N Jhaveri (through main stock broker ASE Capital Markets Ltd.) and its clients Manoj T Shah and Falguni N Shah(hereinafter referred to as ‘the noticee’).
Page 4 of 13 imposed on her under Section 15HA 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-ID-8/WOL/FNS/AO/DRK/ASG/EAD3/143-2009/46-2010. 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.