sebi:PG/AO-57/2010
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Facts / Headnote
Noticee held liable for violation of PFUTP Regulations and penalty of Rs. 2,50,000 imposed under Section 15HA; charge under PIT Regulations not established
Provisions invoked
- s. 15A
- s. 15
- s. 15H
- s. 15J
Regulations
- Reg. 3
- Reg. 13
- Reg. 13(3)
- Reg. 3(a)
- Reg. 13(5)
- Reg. 13(1)
- Reg. 19
Parties
- Cavalier Securities Ltd.
Holding
The Noticee, Cavalier Securities Ltd., violated Regulations 3(a), (b), (c), (d) and 4(1) and 4(2)(a) of PFUTP Regulations by acting as a conduit to aid promoters/related entities in offloading shares, and is liable to penalty under Section 15HA; violation of Regulations 13(3) read with 13(5) of PIT Regulations was not established.
Full text
Page 2 of 22 “BSE”), Ahmedabad Stock Exchange (hereinafter referred to as “ASE”), Saurashtra Kutch Stock Exchange, Rajkot (hereinafter referred to as “SKSE”) and Jaipur stock Exchange (hereinafter referred to as “JSE”). It was observed that no transaction in the said scrip was reported at ASE, SKSE and JSE during the investigation period. Hence, for the purpose of investigation the trades done at BSE were considered.
Page 3 of 22 also assisted the promoter/related entities/other entities to offload shares by creating artificial demand in the scrip by placing large buy orders at very low prices and later canceling them. Therefore it was alleged that the Noticee had violated Regulations 3(a), (b), (c) & (d) and 4(1) & 4(2) (a) of SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Markets) Regulations, 2003 (hereinafter referred to as “PFUTP Regulations”) and consequently was liable for monetary penalty under 15 HA of the SEBI Act, 1992 (hereinafter referred to as “SEBI Act”). Further, it was alleged that the Noticee has also violated regulations 13(3) and 13(5) of SEBI (Prohibition of Insider Trading) Regulations, 1992 (hereinafter referred to as “PIT Regulations”) and consequently was liable for monetary penalty under 15 A (b) of the SEBI Act.
Page 4 of 22 23. SST Sanjay Shankarlal Thakkar Other entity 24. NDT Narendra D Tiwari Other entity 25. RFPL Right Finstock Pvt. Ltd. Other entity
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Source: SecMarx — sebi:PG/AO-57/2010. 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.