sebi:IVD-ID-8/WOL/RNJ/AO/DRK/ASG/EAD3/188-2009/91-2010
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Facts / Headnote
Penalty imposed on the noticee for executing synchronized/circular/reversal trades in the scrip of Wellworth Overseas Ltd.
Provisions invoked
- s. 15
- s. 15H
- s. 15J
Regulations
- Reg. 7
- Reg. 3
- Reg. 4(1)
- Reg. 15
- Reg. 199
- Reg. 200
Parties
- Rajesh N. Jhaveri
Holding
The noticee, a sub-broker, was held liable for executing reversal/circular trades that were synchronized/structured in nature in the scrip of Wellworth Overseas Ltd., in violation of the PFUTP Regulations 1995 and 2003 and the Code of Conduct for Sub-brokers, and a consolidated penalty of Rs. 6,00,000 was imposed.
Full text
2 3. BSE conducted an investigation into the trading of the scrip Wellworth Overseas Ltd. (hereinafter referred to as ‘WOL’) on the basis of an offline alert. The period of investigation was January 01, 2003 to October 30,
3 2003 the scrip was traded at Rs 0.15. Thereafter the price of the scrip moved up from Rs 0.15 on February 25, 2003 to a high of Rs 7.35 on June 25, 2003 and then closed at Rs 6.66 on July 09, 2003. The record date for the stock split was July 21, 2003. During the Post Stock Split period the scrip recorded a volume of 8,62,451 shares on BSE and the scrip was traded for 50 days. The adjusted price of the scrip after the stock split was Re 0.69 on July 29, 2003. The scrip moved up from Re 0.69 on July 29, 2003 to a high of Rs 3.15 on October 10, 2003 and then came down to Rs 1.89 on October 30, 2003.
4 Securities Market) Regulations, 1995 (hereinafter referred to as ‘PFUTP Regulations 1995’) read with Regulation 4(1), 4(2) (a), (g) and (n) of the SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 2003 (hereinafter referred to as the ‘PFUTP Regulations 2003’) and the Code of Conduct prescribed for Stock brokers in Schedule II under Regulation 15 of the SEBI (Stock Brokers and Sub-brokers) Rules and Regulations, 1992 alleged to have been committed by the noticee.
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Source: SecMarx — sebi:IVD-ID-8/WOL/RNJ/AO/DRK/ASG/EAD3/188-2009/91-2010. 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.