sebi:IVD-ID8/SIL/AO/DRK/MD/EAD-3/246/12-2011
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Facts / Headnote
Violation found; consolidated penalty of Rs 2,00,000 imposed under Sections 15HA and 15HB
Provisions invoked
- s. 15
- s. 15H
- s. 15J
Regulations
- Reg. 7
- Reg. 3
- Reg. 4(1)
- Reg. 200
Parties
- Galaxy Broking Limited
Holding
Galaxy Broking Limited, dealing for client Shri Haresh Soni, was held to have violated Regulations 4(1), 4(2)(a), (b), (e), (g) & (n) of PFUTP Regulations, 2003 and Clauses A(1)-(5) of the Code of Conduct for stock brokers by executing circular/reversal synchronized trades creating artificial volumes. A consolidated penalty of Rs 2,00,000 under Sections 15HA and 15HB of the SEBI Act, 1992 was imposed.
Full text
Page 2 of 15 • First Patch - Initially, during the period 31st December 2004 to 11th February 2005, the scrip was infrequently traded with very few trades (average daily volume was 4,448 shares), where the price of the scrip gradually moved up from Rs. 7.99 as on December 31, 2004 to Rs. 15.61 on 11th February 2005, a 95.37 % rise in 21 trading days.
Page 3 of 15 II under Regulation 7 of SEBI (Stock Brokers and Sub Brokers) Regulations, 1992 as alleged to have been committed by Galaxy Broking Limited (hereinafter referred to as ‘ noticee’).
Page 4 of 15 • The said client effected transactions through us between September 2004 to May 2005. We were maintaining a running account in the name of the said client and we were satisfied with the functioning of the account of the said client.
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Source: SecMarx — sebi:IVD-ID8/SIL/AO/DRK/MD/EAD-3/246/12-2011. 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.