sebi:IVD-ID3/ECL-VR/AO/DRK/ASG/EAD3-321/19-2012
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Facts / Headnote
Violation found; penalty of Rs 2,00,000 imposed ex-parte
Provisions invoked
- s. 15
- s. 15H
- s. 15J
Regulations
- Reg. 3
- Reg. 4(1)
Parties
- Vijay Rathod
Holding
The noticee Shri Vijay Rathod violated Regulations 4(1) and 4(2)(a) and (g) of the PFUTP Regulations, 2003 by executing synchronized trades creating artificial volume in the scrip of Era, and a penalty of Rs 2,00,000 under Section 15HA of the SEBI Act, 1992 was imposed ex-parte.
Full text
Page 2 of 12 2. Based on the findings of BSE, an examination was carried out by SEBI. The Investigation Report observed that a group of clients and few stock brokers, trading on their own accounts, traded significantly in the scrip during the Investigation Period. The group aggregately traded for 18,73,122 shares amongst themselves, which accounted for 29.54% of the total market volume of 63,41,973 shares during the period under investigation. This group consisted of namely S. P. J. Stock Brokers Pvt. Ltd. (dealing on its own account), Harikishan Hiralal, presently known as Shree Hari Hira Stock Broking Pvt. Ltd. (dealing for Victory Trading Corporation Ltd.), Sanchay Fincom Ltd. (dealing for Shri Sunil Purohit), Uttam Financial Services Ltd. (dealing on its own account), Galaxy Broking Ltd., (dealing for Shri. Kapil Bhuptani), Shri Adolf Pinto (dealing for Kenneth Pinto, Gillian Pinto and Mangeram Sharma), Vijay Bhagwandas & Co. (dealing for Shri. Tejas Ghelani), Pawan J. Choudhri (dealing on his own account), VSE Stock Services Ltd. (dealing for Shri Mehul Shah), Ajmera Associates Pvt. Ltd. (dealing on behalf of Shri Manherlal Vora, Shri Pratap Sanghvi, Shri Chetan Mehta), Southern Shares & Stocks Ltd. (dealing on behalf of Shri Chirag Pujara) and ISJ Securities Pvt. Ltd. (dealing for Shri Vijay Rathod, hereinafter referred to as ‘the noticee’),. This group is hereinafter referred to as’ the group’. It was alleged that the trades executed amongst the group were synchronized
Page 3 of 12 (Procedure for Holding Inquiry and Imposing Penalties by Adjudicating Officer) Rules, 1995 (hereinafter referred to as ‘Adjudication Rules’) to inquire into and adjudge under Section 15HA of the SEBI Act, the violations of Regulation 4(1) & 4(2) (a), (g) of SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 2003 (hereinafter referred to as the ‘PFUTP Regulations’) alleged to have been committed by the noticee.
Page 4 of 12 without furnishing any reasons for the same. Subsequently, the noticee was contacted via telephone on July 27, 2011 to enquire about the status of delivery of the previous notice and he had confirmed that he had received the notice and had explained that he did not reply since his stock broker did not have any details. The noticee further updated his current address. A final opportunity was granted to the noticee to appear before the undersigned on May 25, 2012 vide hearing notice dated May 09, 2012 sent by Registered Post Acknowledgment Due which was sent to his updated address. The notice was Returned Undelivered by the Postal Authorities with the remark 'refused'.
You have read the preview. Create a free account to read the full order, track this party, and analyse it in Ontology.
Free accounts include 10 searches/day with full order access.
Source: SecMarx — sebi:IVD-ID3/ECL-VR/AO/DRK/ASG/EAD3-321/19-2012. 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.