sebi:MO/192/IVD/02/2006

SEBI · SEBI · 2001-02-01 · Madhukar, Whole Time Member

This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.

Facts / Headnote

Prohibition on buying, selling or dealing in securities for a period of one year

Provisions invoked

• s. 11
• s. 19

Regulations

• Reg. 11
• Reg. 3

Parties

• Hotline Securities Pvt. Ltd.

Holding

Hotline Securities Ltd. was held guilty of indulging in irregular market practices and creating artificial trading in the scrip of TIL, in violation of regulations 3 and 4(a), (b), (c) and (d) of the FUTP Regulations, 1995, and was prohibited from buying, selling or dealing in securities for a period of one year.

Full text

2 Sr. No. Name of the entity Names of directors No. of shares held 1. Hotline Securities Pvt. Ltd. Vinod Kumar Dinesh Kumar Gupta 60, 000

3 23-04-01 31.70 31.70 31.70 31.70 200 24-04-01 29.20 29.20 29.20 29.20 200 25-04-01 26.90 26.90 26.90 26.90 200 27-04-01 24.75 24.75 24.75 24.75 200 30-04-01 23.00 23.00 23.00 23.00 200 03-05-01 21.30 21.30 21.30 21.30 200 23-05-01 23.00 23.00 23.00 23.00 1000 24-05-01 24.80 24.80 24.80 24.80 1000 25-05-01 26.00 26.00 26.00 26.00 1000 28-05-01 26.10 27.90 27.90 26.10 2200 31-05-01 27.90 27.00 27.90 27.00 700 01-06-01 27.25 29.00 29.00 27.25 1000 05-06-01 27.00 26.35 27.00 26.35 1000 06-06-01 25.00 26.00 26.00 25.00 2000 07-06-01 25.50 26.00 26.50 25.50 1000 20-06-01 28.00 28.00 28.00 28.00 1100 21-06-01 30.00 30.00 30.00 30.00 100 22-06-01 31.00 31.00 31.00 31.00 1100 25-06-01 32.00 32.00 32.00 31.00 1500 27-06-01 32.50 32.50 32.50 32.50 500 28-06-01 34.00 34.00 34.00 34.00 500

4 1.3 The investigation further revealed that the trade log of TIL at DSE showed Prabhat Investments Ltd (hereinafter referred to as “PIL”) as top broker who purchased 9, 700 shares, sold 9, 200 shares totaling to 18, 900 shares with a net of 500 shares. Thus PIL had dealt in the shares of TIL for 18,900 shares on gross basis and 500 shares on net basis. From the trade details provided by PIL, during the relevant period, HSL was the only client on whose behalf PIL had dealt. It was observed that HSL, a promoter entity of TIL had traded in the scrip of TIL in large quantities, the details of which are as under : Sr. No. Settlement Date Client Name Buy Quantity Price Sell Quantity Price 1. 02-02-01 Hotline Securities Pvt. Ltd. Nil Nil 500 16.00 2. 09-02-01 Hotline Securities Pvt. Ltd. 500 16.05 Nil Nil 3. 23-02-01 Hotline Securities Pvt. Ltd. 500 13.10 Nil Nil 4. 26-02-01 Hotline Securities Pvt. Ltd. Nil Nil 200 20.05 5. 27-02-01 Hotline Securities Pvt. Ltd. 200 21.95 Nil Nil 6. 16-03-01 Hotline Securities Pvt. Ltd. 500 23.65 Nil Nil 7. 19-03-01 Hotline Securities Pvt. Ltd. Nil Nil 500 25.10

Source: SecMarx — sebi:MO/192/IVD/02/2006. 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.