sebi:PG/AO-52/2010
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Facts / Headnote
Violation of regulations 4(1), 4(2)(a), 4(2)(b) and 4(2)(g) of PFUTP Regulations, 2003 held established; penalty of Rs. 2,50,000 under Section 15HA imposed; regulation 4(2)(n) held not applicable
Provisions invoked
- s. 15
- s. 10
- s. 15H
- s. 15J
- s. 30
- s. 20
- s. 132
- s. 108
- s. 238
- s. 50
- s. 439
- s. 70
Regulations
- Reg. 3
- Reg. 4
- Reg. 4(a)
- Reg. 4(1)
- Reg. 4(b)
- Reg. 4(2)
- Reg. 2
- Reg. 4(c)
- Reg. 4(d)
Parties
- Bela H. Kayastha
Holding
The Noticee Bela H. Kayastha violated regulations 4(1), 4(2)(a), 4(2)(b) and 4(2)(g) of PFUTP Regulations, 2003 by executing synchronized reversal trades in the scrip of ISL creating artificial volume and false appearance of trading. A monetary penalty of Rs. 2,50,000 under Section 15HA of SEBI Act was imposed; regulation 4(2)(n) was held inapplicable as the Noticee is not an intermediary.
Full text
Page 2 of 20 2. The role of the brokers, sub-broker and the clients on whose behalf they had traded in the scrip of ISL during the Investigation Period was examined by SEBI. It was alleged that through collusion, the
Page 3 of 20 5. It is alleged that one of the entities, viz., Bela H. Kayastha (hereinafter referred to as “BHK/Noticee”), had violated the provisions of regulations 4(1), 4(2)(a), 4(2)(b), 4(2)(g) and 4(2)(n) of SEBI (Prohibition of Fraudulent and Unfair Trade Practice relating to Securities Markets) Regulations, 2003 (hereinafter referred to as “PFUTP Regulations”) and therefore, is liable for monetary penalty under sections 15HA of Securities and Exchange Board of India Act, 1992 (hereinafter referred to as “SEBI Act”).
Page 4 of 20 SHOW CAUSE NOTICE, HEARING AND REPLY 8. Show Cause Notice dated March 09, 2006 (hereinafter referred to as “SCN”) was issued to the Noticee under rule 4 of the Rules to show cause as to why an inquiry should not be held against the Noticee and penalty be not imposed under sections 15HA of SEBI Act for the alleged violations specified in the said SCN.
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Source: SecMarx — sebi:PG/AO-52/2010. 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.