sebi:PB/AO-139-141/2010
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Facts / Headnote
Monetary penalty of Rs.2,00,000 imposed jointly and severally for violation of PFUTP Regulations
Provisions invoked
- s. 15
- s. 15H
- s. 15J
Regulations
- Reg. 4
- Reg. 3
- Reg. 4(2)
- Reg. 2
- Reg. 47
- Reg. 3(a)
- Reg. 3(c)
- Reg. 3(b)
- Reg. 4(2)(a)
- Reg. 4(2)(g)
- Reg. 4(2)(b)
- Reg. 3(d)
Parties
- Mr. Hasnain A. Nathani
- Mrs. Shahin A. Nathani
- Mrs. Najmabanu A. Nathani
Holding
The Noticees violated regulations 3(a), 3(b), 3(c), 3(d), 4(1), 4(2)(a), 4(2)(b), 4(2)(e) and 4(2)(g) of the PFUTP Regulations by executing fictitious and synchronized trades in the scrip of REL creating artificial volume and price impact. A monetary penalty of Rs.2,00,000 under section 15HA of the SEBI Act was imposed on the Noticees jointly and severally.
Full text
Page 2 of 23 trading in such a manner that led to creation of artificial volume and impacted the price of the scrip. 3. Mr. Hasnain A. Nathani, Mrs. Shahin A. Nathani and Mrs.Najmabanu A. Nathani who have traded through M/s Marwadi Sharesand Finance Ltd. were found to have been involved in the alleged manipulation and against whom adjudication proceedings were initiated.
Page 3 of 23 cause as to why an inquiry should not be held and penalty be not imposed under section 15HA of the SEBI Act for the alleged violation specified in the said SCNs.
Page 4 of 23 Nathani on behalf of Mrs. Shahin A. Nathani, appeared on October 13, 2010. Mr. Hasnain A. Nathani on behalf of all three Noticees submitted inter-alia as under: “I reiterate the submissions made vide email dated July 05, 2010. I also request you take on record reply given by me to the Investigating Authority. I invest a small amount of my funds in market based on the tips of my relatives and friends. I was not properly guided by K.G.Vora, Sub-broker of M/s Marwadi Shares & Finance Limited that such types of trades should not be placed. I admit that I have contravened Rules and Regulations. However, the same has been done inadvertently. Considering the fact that we have earned a profit of Rs. 12,000/- only approximately on these transactions, I request the AO to take lenient view in the matter”.
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Source: SecMarx — sebi:PB/AO-139-141/2010. 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.