sebi:ORDER/BS/AU/2021/22/14985-14986
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Facts / Headnote
Penalty of Rs. 5,00,000 imposed on Noticee No. 1; proceedings against Noticee No. 2 disposed of without penalty
Provisions invoked
- s. 15
- s. 15H
- s. 15I
- s. 15J
Regulations
- Reg. 7
- Reg. 3
- Reg. 4(1)
- Reg. 3(a)
Parties
- Mr. Mohammad Rashid (Noticee No. 1)
- R K Stockholding Pvt. Ltd. (Noticee No. 2)
Holding
Noticee No. 1 (Mr. Mohammad Rashid) violated Regulations 3(a) to (d), 4(1), 4(2)(a) and (g) of PFUTP Regulations by executing synchronized trades creating artificial volume in the scrip of Religare (REL), and a penalty of Rs. 5,00,000 was imposed under Section 15HA of the SEBI Act. The proceedings against Noticee No. 2 (R K Stockholding Pvt. Ltd.) were disposed of without any penalty.
Full text
Page 2 of 14 period. R K Stockholding Pvt. Ltd. (hereinafter referred to as Noticee No 2) was the broker of Noticee No. 1 in execution of the said transactions.
Page 3 of 14 SEBI(Stock Brokers and Sub-Brokers) Regulations, 1992 (hereinafter referred to as Stock Broker Regulations).
Page 4 of 14 b. Whether Noticee No. 2 violated Regulations 4(1), 4(2) (a) of PFUTP Regulations, 2003 and Clause A (3), (4), (5) of the Code of Conduct prescribed for Stock Brokers specified under Schedule II under Regulation 7 of the Stock Broker Regulations? c. Does the violation, if established, attract monetary penalty under Sections 15HA and 15 HB of SEBI Act, 1992? d. If yes, then what should be the quantum of penalty?
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Source: SecMarx — sebi:ORDER/BS/AU/2021/22/14985-14986. 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.