sebi:PG/AO-47/2010
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Facts / Headnote
Violation of PFUTP Regulations and Brokers Code of Conduct held established; monetary penalty under section 15HA attracted
Provisions invoked
- s. 15
- s. 15H
- s. 15J
Regulations
- Reg. 7
- Reg. 4
- Reg. 4(a)
- Reg. 3
- Reg. 4(1)
- Reg. 4(b)
- Reg. 4(2)
- Reg. 2
- Reg. 4(c)
- Reg. 4(d)
Holding
The Noticee, an NSE broker trading for Kuber, Bhavesh Pabari, A K Agarwal and Kishan Agarwal, violated PFUTP Regulations, 1995 and 2003 and Clauses A(1) to (5) of the Brokers Code of Conduct by executing synchronized circular/reversal trades in REL that created false appearance, artificial volume and price. The violation attracts monetary penalty under section 15HA of the SEBI Act.
Full text
Page 2 of 34 to as ‘NSE’) and Bombay Stock Exchange Ltd. (hereinafter referred to as ‘BSE’). 2. Analysis of Price Volume data:
Page 3 of 34 At BSE, the price opened at Rs. 70.50 on June 06, 2003 and closed at Rs. 115.15 on August 29, 2003. During the period, BSE Sensex opened at 3176 in the month of June 2003 and increased to 4244 by the end of August 2003. Average daily volume in the scrip was around 25,000 shares during the said period. Total volume executed at BSE and NSE was 16.50 lacs and 11.18 lacs shares respectively.
Page 4 of 34 Bhawan, 31, Israil Mohalla, Masjid Bunder Road, Mumbai- 400 009, had on behalf its clients Kuber, Bhavesh Pabari, A K Agarwal, Kishan Agarwal executed synchronised and circular trades with other clients viz. Airtel, Shravankumar Goyal, Ashok Sharma, Bhavesh Pabari, Naresh N Shah, and therefore had allegedly violated regulations 4(a), (b), (c) and (d) of SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Markets) Regulations, 1995 (hereinafter individually referred to as ‘PFUTP Regulations, 1995’) read with regulations 4(1), 4(2) (a), (b), (g) and (n) of SEBI (Prohibition of Fraudulent and Unfair Trade Practice relating to Securities Markets) Regulations, 2003 ( hereinafter individually referred to as ‘PFUTP Regulations, 2003’) both the above regulations are hereinafter referred to as “PFUTP Regulations”) and clauses A(1), (2), (3), (4) and (5) of the Code of Conduct for stock brokers under Schedule II of Regulation 7 of SEBI (Stock Brokers and Sub-brokers) Regulations, 1992 (hereinafter referred to as Brokers Regulation).
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Source: SecMarx — sebi:PG/AO-47/2010. 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.