sebi:PKK/AO/180/2010
Facts / Headnote
Violation established; penalty of Rs. 1,00,000 imposed under Section 15HA
Provisions invoked
- s. 15
- s. 15H
- s. 15J
Regulations relied on
- SEBI (PFUTP) Regulations, 2003 — 4(1)
- SEBI (PFUTP) Regulations, 2003 — 4(2)(a)
- SEBI (PFUTP) Regulations, 2003 — 4(2)(e)
Parties
- Shri Santosh Krishna Pawar
Holding
The Noticee violated Regulations 4(1), 4(2)(a) and 4(2)(e) of the PFUTP Regulations, 2003 and was held liable under Section 15HA of the SEBI Act. A monetary penalty of Rs. 1,00,000 was imposed on the Noticee.
Full text
Page 2 of 10 2. During the investigation it was found that certain entities connected to each other acting as clients with some brokers carried out large number of trades both off market and on market in the scrip of MCL. The transfer of shares of MCL in the off market among the entities further established the linkages between them. These entities used to complete many of the market obligations by the shares received through off market transfers. They were involved in creation of artificial volume and liquidity which led to price increase to unrealistic levels as mentioned above. Investigation revealed that Shri Santosh Krishna Pawar (hereinafter referred to as the ‘Noticee’) was one of the connected entities found involved in dealing in the scrip of MCL in the above manner during the investigation period.
Page 3 of 10 under Section 15 I of the SEBI Act (hereinafter referred to as the ‘SEBI Act’) read with Rule 3 of SEBI (Procedure for holding Inquiry and Imposing Penalty by Adjudicating Officer) Rules, 1995 (hereinafter referred to as the ‘Adjudicating Rules’) to inquire into and adjudge under Section 15 HA of the SEBI Act, the alleged violation by the Noticee of the abovementioned provisions of the SEBI Act. Consequent to Mrs. Rayudu being sent on deputation, Mr. Sandeep Deore was appointed as the AO vide SEBI Order dated November 23,
Page 4 of 10 of their trading volume and 6% of the market volume through his broker Religare Securities Ltd. The Noticee is Director of M/s. Newleader Trading Co. Pvt. Ltd. and related to other clients namely Interlink Financial Services Ltd. and Sharpline Trading Co. Pvt. Ltd. through common Director Shri Ramdas Kshirsagar. He was also Director of Shree Ambey Textiles Pvt. Ltd. and M/s. Stockholm Mercantile Co. Pvt. Ltd. Rakishore Singh and Newleader have the same phone number.
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Source: SecMarx — sebi:PKK/AO/180/2010. 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.