sebi:PKK/AO/141/2011
Facts / Headnote
Penalty imposed on the Noticee for violating PFUTP Regulations
Provisions invoked
- s. 15
- s. 15H
- s. 15J
Regulations relied on
- SEBI (PFUTP) Regulations, 2003 — 3(a)
- SEBI (PFUTP) Regulations, 2003 — 3(c)
- SEBI (PFUTP) Regulations, 2003 — 3(d)
- SEBI (PFUTP) Regulations, 2003 — 4(1)
- SEBI (PFUTP) Regulations, 2003 — 4(2)(a)
- SEBI (PFUTP) Regulations, 2003 — 4(2)(g)
Parties
- Ms. Rashmi Gandhi
Holding
The Noticee, Ms. Rashmi Gandhi, violated Regulations 3(a), 3(c), 3(d), 4(1), 4(2)(a) and 4(2)(g) of the PFUTP Regulations by engaging in circular/reversal trades with connected entities of the Mehta Group that created artificial volume and a false appearance of trading in the scrip of JTREL. A penalty of Rs. 75,000 was imposed under Section 15HA of the SEBI Act.
Full text
Page 2 of 13 days with an average daily volume of 14,604 shares and patch II (July 13, 2009 to July 23, 2009) wherein price rose from Rs.340.00 to Rs.531.65 and closed at Rs. 492.80/- in 9 trading days with an average daily volume of 11,850 shares. A price fall was also observed during the period from June 08, 2009 to June 23, 2009 wherein price fell from Rs. 458 to Rs.325.95 and closed at Rs. 329.70 in 12 trading days with an average daily volume of 8,845 shares. The Investigation revealed that a group of clients connected to each other one way or the other indulged in circular/reversal of trades, synchronized trades and other fictitious trades to create artificial volume and false appearance of trading which resulted in sudden spurt in the price and volume in the scrip during the investigation period. Ms. Rashmi Gandhi (hereinafter referred to as the ‘Noticee’) is one such client.
Page 3 of 13 imposed under Section 15 HA of the SEBI Act for her alleged violation of the abovementioned provisions of the PFUTP Regulations.
Page 4 of 13 Emkay issued the contract notes of Mr. Jitendra Jain to another e-mail id of Sunil Mehta i.e. mehta_sunil@yahoo.co.in.
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Source: SecMarx — sebi:PKK/AO/141/2011. 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.