sebi:PG/AO-53/2010
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Facts / Headnote
Violations established; penalty of Rs.1,25,000 imposed on the Noticee
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(1)
- Reg. 15
- Reg. 4(a)
- Reg. 2
- Reg. 4(2)(n)
Parties
- Shri Parshwa Finance
- Piyush S Jhaveri
Holding
The Noticee, sub-broker Shri Parshwa Finance, violated regulations 4(1), 4(2)(a), 4(2)(b), 4(2)(g) and 4(2)(n) of PFUTP Regulations and Clauses A(1) and A(2) of Code of Conduct for Sub-Brokers by executing synchronized reversal/circular trades creating artificial volume, and is liable to monetary penalty under sections 15HA and 15HB of SEBI Act.
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 brokers, sub-brokers and their clients transacted in the shares of ISL in such a manner that led to creation of artificial volumes in the scrip and was designed to create a false market leading to significant price movement in the scrip.
Page 3 of 20 4. It was alleged that one of the entities, viz., Shri Parshwa Finance (hereinafter referred to as “PF/Noticee”), sub-broker of P Suryakant Share & Stock Brokers Pvt. Ltd. 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 Clauses A(1) and A(2) of Code of Conduct for Sub-Brokers as specified in Schedule II read with regulation 15 of SEBI (Stock Brokers and Sub Brokers) Regulations, 1992 (hereinafter referred to as “Broker Regulations”) and therefore, liable for monetary penalty under sections 15HA and 15HB of Securities and Exchange Board of India Act, 1992 (hereinafter referred to as “SEBI Act”). SPF is a proprietorship concern of Piyush S Jhaveri having its current address at 2796, Zaveriwad, Opp Laheria Pole, Relief Road, Ahmedabad – 380001. The PAN of Piyush S Jhaveri is AEFPJ0864C.
Page 4 of 20 6. Consequent upon the transfer of the undersigned, Mr. V.S. Sundaresan was appointed as the Adjudicating Officer vide order dated November 19, 2007. Consequent upon the transfer of Mr. V.S. Sundaresan, the undersigned was appointed as Adjudicating Officer vide order dated November 12, 2009. SHOW CAUSE NOTICE, HEARING AND REPLY
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Source: SecMarx — sebi:PG/AO-53/2010. 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.