sebi:PG/AO-71/2010
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Facts / Headnote
Penalty imposed on the Noticee for violation of PFUTP Regulations
Provisions invoked
- s. 15
- s. 15H
- s. 15J
Regulations
- Reg. 3
- Reg. 4
- Reg. 4(a)
Parties
- Ms. Falguni Shah
Holding
The Adjudicating Officer held that the Noticee, Ms. Falguni Shah, violated regulations 4(1), 4(2)(a), (b), (e) and (g) of the PFUTP Regulations by executing synchronized circular/reversal trades in AEL shares, and imposed a penalty of Rs. 1,50,000 under section 15HA of the SEBI Act. Regulation 4(2)(n) was held not applicable to the Noticee as it applies only to intermediaries.
Full text
Page 2 of 17 Entities which traded on BSE Sl. No. Name of Broker Name of Sub- broker Name of Client 1 ASE Capital Markets Ltd Rajendra J Shah V&S Intermediaries 2 ASE Capital Markets Ltd ESS ESS Intermediaries Pvt. Ltd Samir P Shah 3 ASE Capital Markets Ltd Rajesh N Jhaveri Falguni Shah 4 Naman Securities & Finance P Ltd --- ESS ESS Intermediaries Pvt. Ltd 5 Mangal Keshav Securities Ltd E Stocks Inc. Dilip Champalal Jain 6 Vijay Bhagwandas Shah --- Own/director’s account 7 Sanchay Fincom Ltd --- Tejas Ghelani
Page 3 of 17 ASE Capital Services Ltd, broker, BSE (hereinafter referred to as “ACML”) with V & S Intermediaries (hereinafter referred to as “V&S”) through M/s. Rajendra J Shah (hereinafter referred to as “RJS”) sub broker of ACML had violated the provisions of regulations 4 (1), 4 (2) (a), (b), (e), (g) and (n) of Securities and Exchange Board of India (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Markets) Regulations, 2003 (hereinafter referred to as “PFUTP 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”).
Page 4 of 17 hearing notice dated August 12, 2009 the Noticee was given an opportunity of personal hearing on August 25, 2009 to which the Noticee responded vide letter dated August 20, 2009 stating that she wants to file an application for consent proceedings. On September 22, 2009 SEBI communicated a consent application has been filed by the Noticee. Subsequently on July 26, 2010 SEBI communicated that consent application filed by the Noticee has been rejected.
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Source: SecMarx — sebi:PG/AO-71/2010. 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.