sebi:MO/70/IVD/08/04
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Facts / Headnote
Suspension of certificate of registration for a period of two months
Provisions invoked
- s. 19
Regulations
- Reg. 7
- Reg. 13(4)
- Reg. 13
- Reg. 5
Parties
- M/s. Prabhat Investments
Holding
The Whole Time Member imposed a minor penalty of suspension of certificate of registration of M/s. Prabhat Investments for a period of two months for violation of clause A (2) & (5) of the Code of Conduct for stock brokers.
Full text
Home » Enforcement » Orders » Orders of Chairman/Members Enforcement Enforcement▼ Order Against Prabhat Investments Member Aug 31, 2004 | Orders : Orders of Chairman/Members MO/70/IVD/08/04 UNDER REGULATION 13 (4) OF SECURITIES AND EXCHANGE BOARD OF INDIA (PROCEDURE FOR HOLDING ENQUIRY BY ENQUIRY OFFICER AND IMPOSING
Vatsa World Limited (hereinafter referred to as "VWL") was incorporated as a private company named as Ongoing Advertising and Packing Pvt Ltd, which was converted into a public company on 20th February 1996 and on 19th June 2001 the name was changed to VWL. Subsequently VWL acquired the business of Little Kingdom Edutech Ltd, an educational technology based company and adopted its name. The shares of VWL are listed for trading on the Delhi Stock Exchange (hereinafter referred to as "DSE"). DSE, on observing a significant variation in the price of scrip of VWL, conducted an investigation and submitted a report to the Securities and Exchange Board of India (hereinafter referred to as "the SEBI"). DSE had inter-alia made the following observations: The price of the scrip increased from Rs.12.50 on April 9, 2001 to Rs.43.05 on July 10, 2001. The increase in price was not accompanied by a corresponding increase in trading volume. The entire trading was concentrated amongst 8 members of the exchange. Most of the trades were squared off and there was only one instance of delivery during the entire trading period spread over 15 settlements. The scrip of VWL was traded for 33 days with 26,700 shares being traded i.e an average of 810 shares per day. Some of the members or their clients were suspected to be related to the company. Hence, DSE suspected possible price manipulation and insider trading by the company, its promoters or associates. 1. 2. 1. 1. 2. 3. 4. 5.
ENQUIRY PROCEEDINGS 5. In view of the above, SEBI, vide order dated 24th July 2003 appointed an Enquiry Officer (hereinafter referred to as "the Enquiry Officer") under Regulation 5 (1) of Securities and Exchange Board of India (Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002 (hereinafter referred to as "the Regulations") to enquire into possible violations of inter alia, Broker Regulations.
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Source: SecMarx — sebi:MO/70/IVD/08/04. 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.