sebi:PG/AO-15/2010
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Facts / Headnote
Penalty of Rs. 3,00,000 imposed on the Noticee under section 15HA of the SEBI Act for violating regulations 4(1), 4(2)(a), 4(2)(b), 4(2)(e) and 4(2)(g) of the PFUTP Regulations; regulation 4(2)(n) held not applicable to the Noticee as it applies only to intermediaries.
Provisions invoked
- s. 11B
- s. 15
- s. 15H
- s. 15J
Regulations
- Reg. 3
- Reg. 4
- Reg. 4(1)
- Reg. 4(a)
- Reg. 4(2)
- Reg. 2
- Reg. 4(2)(a)
- Reg. 4(2)(e)
- Reg. 4(2)(g)
- Reg. 4(2)(b)
Parties
- Manoj T Shah
Holding
The Noticee, Manoj T Shah, was held to have violated regulations 4(1), 4(2)(a), 4(2)(b), 4(2)(e) and 4(2)(g) of the PFUTP Regulations by engaging in synchronized circular/reversal trades in AEL shares, and a penalty of Rs. 3,00,000 was imposed under section 15HA of the SEBI Act. Regulation 4(2)(n) was held inapplicable as it applies only to intermediaries.
Full text
Page 2 of 21 2. The role of the brokers, sub-brokers and their clients who had traded in the scrip was scrutinized. It was observed during the investigation that certain entities had indulged in synchronization of deals/reversal trading/fictitious trading in the shares of AEL in such a manner that led to creation of artificial volume and impacted the price of the scrip. The entities found to have been involved in the alleged manipulation are as under:-
Page 3 of 21 (hereinafter referred to as “PFUTP Regulations”) and therefore, liable for monetary penalty under sections 15HA and 15HB of Securities and Exchange Board of India Act, 1992 (hereinafter referred to as “SEBI Act”). The current address of Manoj T Shah is 84, Jain Temple, P.O. Pansar, Taluka Kalol – 382740. APPOINTMENT OF ADJUDICATING OFFICER
Page 4 of 21 independent of each other. Show Cause Notice No. IVD/ID1/PKN/JJ/61244/2006 dated February 23, 2006 was issued to the Noticee as part of proceedings under Sec.11B of the SEBI Act, 1992. On the other hand, the present proceedings were different inasmuch as the show cause notice was issued as part of the adjudication proceedings under the Rules.
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Source: SecMarx — sebi:PG/AO-15/2010. 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.