sebi:PG/AO-33/2010
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Facts / Headnote
Penalty of Rs.1,00,000 imposed under Section 15HA
Provisions invoked
- s. 15
- s. 15H
- s. 15J
Regulations
- Reg. 4
- Reg. 3
- Reg. 4(1)
- Reg. 4(a)
- Reg. 4(2)
- Reg. 4(2)(a)
- Reg. 4(2)(e)
- Reg. 4(2)(g)
- Reg. 4(2)(b)
Parties
- Mangeram S. Sharma
Holding
The Noticee violated Regulations 4(1), 4(2)(a), 4(2)(b), 4(2)(e) and 4(2)(g) of the PFUTP Regulations by executing synchronized circular/reversal trades and self trades in Adani Enterprises Ltd. A monetary penalty of Rs.1,00,000 under Section 15HA of the SEBI Act was imposed.
Full text
Page 2 of 24 September 20, 2006, Adani Exports Ltd. is known as Adani Enterprises Ltd. 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 synchronized reversal / 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 and against whom adjudication proceedings were initiated are as under:- Entities which traded on BSE Sl. No. Name of Broker Name of Sub-broker Name of Client 1 ASE Capital Rajender J Shah V&S Intermediaries 2 ASE Capital ESS ESS Intermediaries Samir P Shah 3 ASE Capital Rajesh N Jhaveri Falguni Shah 4 Naman Securities --- ESS ESS Intermediaries 5 Mangal Keshav E Stocks INC Dilip Champalal Jain 6 Vijay Bhagwandas --- Own/director’s account 7 Sanchay Fincom --- Tejas Ghelani
Page 3 of 24 referred to as “Kotak”) on NSE had violated the provisions of regulations 4(1), 4(2)(a), 4(2)(b), 4(2)(e), 4(2)(g) and 4(2)(n) of SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Markets) Regulations, 2003 (hereinafter referred to as “PFUTP Regulations”) and was therefore liable for monetary
Page 4 of 24 SCN. However, the proof of delivery of the said Notice was not signed. Therefore, the said SCN was reissued to the Noticee on February 25, 2010 through his broker, viz. Kotak, and the same was also published in the Newspaper “Sakal” on April 10, 2010. The Noticee acknowledged the receipt of the said SCN. However, he did not reply to the same.
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Source: SecMarx — sebi:PG/AO-33/2010. 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.