sebi:PG/AO-19/2010
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Facts / Headnote
Alleged violation of PFUTP Regulations upheld; penalty determination under section 15HA of SEBI Act considered (penalty amount not stated in excerpt)
Provisions invoked
- s. 15
- s. 15H
- s. 15J
Regulations
- Reg. 4
- Reg. 4(a)
- Reg. 3
- Reg. 4(1)
- Reg. 4(b)
- Reg. 2
- Reg. 4(c)
- Reg. 4(d)
Parties
- Keval Share Broking Pvt Ltd
Holding
The Noticee (Keval Share Broking Pvt Ltd) violated the PFUTP Regulations by engaging in synchronized and reversal trades in REL shares with related entities (Airtel, Nirmit, Kuber) during June-August 2003, thereby artificially inflating price and creating false trading volumes. The Noticee's contention of independent decision-making and jobbing was rejected.
Full text
Page 2 of 28 2. Analysis of Price Volume data: ¾ First Period: (September 2002-February 2003): At BSE, price of the scrip opened at Rs. 89.00 on September 02, 2002 and moved in a narrow range and closed at Rs. 70.00 on January 09, 2003. In the month of September and October 2002, the scrip was traded for 14 days and 21 days. In the months of November and December 2002, trading took place only on two days and four days respectively. Later, in January 2003, except for one day, there was no trading in the scrip till 15/1/2003.
Page 3 of 28 volume executed at BSE and NSE was 16.50 lacs and 11.18 lacs shares respectively. 3. The role of the brokers, sub-brokers and the clients on whose behalf they had traded in the scrip of REL during the second period of investigation was examined by SEBI. It was alleged that through collusion, the brokers, sub-brokers and their clients indulged in synchronized and reversal trades in the said scrip resulting into artificial rise in the volume and price of the scrip.
Page 4 of 28 S.No Short form Name Category 1. Sanchay Sanchay Fincom Ltd Broker 2. SKSE SKSE Securities Ltd. Broker 3. Aishwarya Aishwarya Avenues ltd Sub-broker
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:PG/AO-19/2010. 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.