sebi:PG/AO-27/2010
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Facts / Headnote
Violation of regulations 4(2)(a) and (g) of PFUTP Regulations held established; violation of regulation 4(2)(b) held not established; penalty of Rs.3,00,000 imposed under section 15HA of SEBI Act
Provisions invoked
- s. 15
- s. 15H
- s. 15J
Regulations
- Reg. 4
- Reg. 4(a)
- Reg. 4(2)
- Reg. 4(2)(a)
- Reg. 4(2)(g)
- Reg. 4(2)(b)
Parties
- Mr. Swaminathan Subramani
Holding
The Adjudicating Officer held that Mr. Swaminathan Subramani violated regulations 4(2)(a) and (g) of the PFUTP Regulations by executing self/wash trades creating artificial volumes in four scrips, while the charge under regulation 4(2)(b) was not established, and imposed a penalty of Rs.3,00,000 under section 15HA of the SEBI Act.
Full text
Page 2 of 17 a) Visesh Infotecnics Ltd. b) Sanra Software Ltd. c) Jumbo Bag Ltd. d) Cerebra Integrated Technologies Ltd. e) Brushman India Ltd. f) Tricom India Ltd. g) Glory poly Films Ltd. h) Rainbow Foundations Ltd. i) GV Films Ltd. j) Yogi Sung-Won India Ltd. k) Kaashyap Radiant Systems Ltd. l) International Hometex Ltd.
Page 3 of 17 APPOINTMENT OF ADJUDICATING OFFICER 4. Mr. V.S. Sundaresan was appointed as Adjudicating Officer vide order dated November 24, 2008 under section 15 I of SEBI Act read with rule 3 of SEBI (Procedure for Holding Inquiry and Imposing Penalties by Adjudicating Officer) Rules, 1995 (hereinafter referred to as ‘Rules’) to inquire into and adjudge the alleged violations of provisions of PFUTP Regulations.
Page 4 of 17 “The other two names mentioned in your letter are not relevant to me and I am no way connected to them. I am having Demat and trading accounts as mentioned in your letter. Sir I also promise you I did not have any small intention to manipulate the price by creating an artificial market with regard to Trading done by me. I was doing such type of transactions with the only sole purpose of maintaining the Credit/Debit balances with the respective brokers with whom I am having accounts. To ensure that I receive the shares at the same rates I used to put the sale, and buy orders simultaneously at the same rate and same time to respective brokers with whom I had to maintain the credit balance. The person who introduced me to open the accounts had wrongly written the same contact numbers to all the clients introduced by him in the KYC Forms. I also humbly plead your goodselves that none of the transactions done by me falls neither in synchronized trading nor circular trading as it failed to fulfill the entire criteria as defined by applicable acts in force from time to time.
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Source: SecMarx — sebi:PG/AO-27/2010. 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.