sebi:MO/81/IVD/01/2007
Facts / Headnote
Restrained Pranav Financial Services Ltd. and PFS Investments & Securities Pvt. Ltd. from accessing the securities market and from buying, selling and dealing in securities for a period of one year.
Provisions invoked
- s. 11B
- s. 19
Regulations relied on
- SEBI (PFUTP) Regulations, 1995 — 4(d)
- SEBI (PFUTP) Regulations, 2003 — 4(a)
- SEBI (PFUTP) Regulations, 2003 — 4(b)
Parties
- Pranav Financial Services Ltd.
- PFS Investments & Securities Pvt. Ltd.
Holding
The noticees, Pranav Financial Services Ltd. and PFS Investments & Securities Pvt. Ltd., were found guilty of violating Regulation 4(a), (b) and (d) of the FUTP Regulations, 1995 by indulging in transactions intended to artificially raise prices, create a false appearance of trading, and deal in securities without transfer of beneficial ownership. They were restrained from accessing the securities market and from buying, selling and dealing in securities for a period of one year.
Full text
Page 2 of 11 the period from November 20, 2000 to December 19, 2000, the price of the scrip of PTL had gone up from Rs. 92.30 to Rs. 149.75. During the period both the entities had placed continuous buy orders at higher than the last traded prices through the broker PSL. In the light of these facts, it was alleged that PFSL & PFSIS had assisted and abetted the broker PSL in creating artificial volumes influencing prices in the scrip of PTL and thus violating the provisions of Regulations 4(a), (b) and (d) of SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 1995 (hereinafter referred to as FUTP Regulations).
Page 3 of 11 3.0 Consideration of issues and findings 3.1 I have carefully examined the facts and circumstances of the case, investigation reports and other material available on record. I have also
Page 4 of 11 themselves and with P-Sec Pvt. Ltd. on both rolling segment as well as the account period segment on many occasions, without the accompanying transfer of shares/funds. Further in some case PFS was on both buy side and sell side. So is the case with PFSIS. This has been apparently done to establish the price of the scrip and to create a false appearance of trading in the scrip. Few such instances are brought out in the table given below:
You have read the preview. Create a free account to read the full order, track this party, and analyse it in Ontology.
Free accounts include 10 searches/day with full order access.
Source: SecMarx — sebi:MO/81/IVD/01/2007. 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.