sebi:IVD-ID6/KSERA-I-SP/AO/DRK/ASG/EAD3-/169-2009/72-2010
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Facts / Headnote
Penalty of Rs. 15,00,000 imposed on the noticee for violations of Regulation 4(1) and 4(2)(a),(b),(e),(g) of the PFUTP Regulations
Provisions invoked
- s. 15
- s. 15H
- s. 15J
Regulations
- Reg. 3
- Reg. 4(1)
Parties
- Shri Sunil Purohit
Holding
The noticee Shri Sunil Purohit was held to have violated Regulation 4(1) and 4(2)(a),(b),(e),(g) of the PFUTP Regulations by executing synchronized/circular trades and non-genuine transactions in the scrip of KSERA along with a group of clients and stock brokers during the period June 01, 2004 to October 31, 2004. A penalty of Rs. 15,00,000 was imposed under Section 15HA of the SEBI Act.
Full text
Page 2 of 12 KSERA were listed only in BSE. The Investigation Report observed that during the Investigation Period the price of the scrip opened at Rs. 83.00 on June 01, 2004, reached period low of Rs. 79.90 on June 01, 2004, touched a high of Rs. 164.00 on October 28, 2004 and closed at Rs. 151.75 on October 29, 2004. During the period from June 1, 2004 to June 25, 2004 the scrip moved gradually from Rs.79.90 to 117.10 in 19 trading days. Thereafter the scrip registered a day high of Rs.130 on June 28, 2004. The price was moving in a range of Rs.105 to Rs.125 till July 14,
Page 3 of 12 as the ‘SEBI Act’), read with Rule 3 of Securities and Exchange Board of India (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) and 4(2) (a), (b) (e) and (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 Shri Sunil Purohit (hereinafter referred to as ‘the noticee’).
Page 4 of 12 8. A hearing notice dated March 25, 2009, granting a personal hearing to the noticee on May 06, 2009 was sent to the noticee by Registered Post Acknowledgment Due. The noticee failed to appear for the hearing. Subsequently a final hearing notice dated June 04, 2009 was issued to the noticee by Registered Post Acknowledgment Due granting him an opportunity of hearing on June 26, 2009 and the same was also sent to another stock broker of the noticee Sanchay Fincom Ltd. for effecting delivery vide letter dated June 05, 2009. The proof of delivery is available on record. This stock broker also did not reply to the letter.
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Source: SecMarx — sebi:IVD-ID6/KSERA-I-SP/AO/DRK/ASG/EAD3-/169-2009/72-2010. 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.