sebi:PB/AO-08/2010
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Facts / Headnote
Violations established; penalty of Rs.50,000 under Section 15HA and Rs.50,000 under Section 15HB (total Rs.1,00,000) imposed
Provisions invoked
- s. 15
- s. 15H
- s. 15J
Regulations
- Reg. 7
- Reg. 3
- Reg. 4(2)
- Reg. 2
- Reg. 4(2)(a)
- Reg. 4(2)(e)
- Reg. 4(2)(g)
- Reg. 4(2)(b)
Parties
- Pramod Kumar Kothari
Holding
The Noticee violated Regulations 3, 4(1), 4(2)(a), (b), (e), (g), (n), (o) of PFUTP Regulations and Clauses A(1)-(4) and B(4)(a) of the Stock Brokers Code of Conduct by executing cross deals/synchronized trades in PSL creating artificial volume and price rise, and is liable to monetary penalty under Sections 15HA and 15HB of SEBI Act.
Full text
Page 2 of 21 significant price movement in the scrip which lacked presence of any sort of fundamentals. 2. It was alleged that one of the brokers, Pramod Kumar Kothari, Member, CSE (hereinafter referred to as “Noticee”/“PKK”) violated the provisions of regulations 3, 4 (1), 4 (2) (a), (b), (e), (g), (n) and (o) of SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Markets) Regulations,2003 (hereinafter referred to as “PFUTP Regulations”) and clauses A (1), (2), (3),(4) and B (4) (a) of Code of Conduct for Stock Brokers as specified in Schedule II under Regulation 7 of SEBI (Stock Brokers and Sub Brokers) Regulations, 1992 (hereinafter referred to as “Brokers Regulations”).
Page 3 of 21 SHOW CAUSE NOTICE, HEARING AND REPLY 6. Show Cause Notice No. EAD-5/VSS/SS/136466/2008 dated August 29, 2008 (hereinafter referred to as “SCN”) was issued to the Noticee under rule 4(1) of the Rules to show cause as to why an inquiry should not be held and penalty be not imposed under sections 15HA and 15 HB of SEBI Act for the alleged violation specified in the said SCN.
Page 4 of 21 b) Does the violation, if any, on the part of the Noticee attract monetary penalty under sections 15 HA and 15 HB of SEBI Act? c) If so, what would be the monetary penalty that can be imposed taking into consideration the factors mentioned in section 15J of SEBI Act?
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Source: SecMarx — sebi:PB/AO-08/2010. 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.