sebi:IVD-ID5/ADPL-SGP-HSP/AO/DRK-AKS/EAD3-469-470/12-13/2014
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Facts / Headnote
Penalty imposed on noticees for fraudulent and unfair trade practices
Provisions invoked
- s. 15
- s. 15H
- s. 15J
Regulations
- Reg. 3
Parties
- Shri Somabhai Gokaldas Patel
- Ms Hiraben Somabhai Patel
Holding
The noticees violated Regulations 3(a), (b), (c), (d) and 4(1), 4(2)(a), (b), (g) of the PFUTP Regulations, 2003 by entering into reversal trades with each other in the scrip of ADPL, and a consolidated penalty of Rs. 6,00,000/- was imposed on them under Section 15HA of the SEBI Act.
Full text
Page 2 of 8 on 22.01.2009 and closed at ` 45.1 on 31.08.2009. The average daily traded volume during the period is 55,174 shares. APPOINTMENT OF ADJUDICATING OFFICER
Page 3 of 8 4. Noticees vide their letters dated 10.09.2013 replied to the SCN as follows: • One Shri Tejas Shah, employee of Religare Securities Ltd. was handling both noticees portfolio. During the tenure of January 2009 to March 2009, Shri Tejas Shah was employed with Religare Securities Ltd.. Since March 2009 he is in the employment of SSJ Finance Pvt. Ltd.
Page 4 of 8 8. Somabhai and Hiraben are husband and wife. As can be observed from the IR, noticees have on 11 days executed 47 reversal trades for 1,15,290 shares which is 22.38% of their total traded quantity in the scrip of ADPL. Out of 1,15,290 shares, 1,07,245 shares were perfectly synchronised trades i.e. structured trades (not only time of buy and sell order was within 1 minute but the order price and quantity was also matching). Instance of their reversal trade which was also perfectly synchronised in the scrip is as follows:
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Source: SecMarx — sebi:IVD-ID5/ADPL-SGP-HSP/AO/DRK-AKS/EAD3-469-470/12-13/2014. 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.