sebi:PKK/AO/180/2011
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
Provisions invoked
- s. 15
- s. 15H
- s. 15J
Regulations
- Reg. 7
- Reg. 4
- Reg. 3
- Reg. 4(1)
Parties
- AMI Stock & Share Brokers Pvt. Ltd. presently called as M/s. Navkar Wealth Services Pvt. Ltd.
Holding
The Noticee was held to have created artificial volume by aiding and abetting synchronized trades among related/connected entities in the scrip of KSML, violating Regulations 4(1), 4(2)(a) and (g) of the PFUTP Regulations, Broker Regulations and SEBI circular, and a total penalty of Rs 50,000 under Sections 15HA and 15HB was imposed.
Full text
Page 2 of 10 the Noticee) contributed significantly to the volume by dealing within the group. The trades within the group were mostly synchronized in nature. The group created artificial volume in the scrip of KSML which is not very financially sound company by indulging into trades within the group in a synchronized manner.
Page 3 of 10 of the provisions of Regulations 4 (1), 4 (2)(a) and (g) of the PFUTP Regulations, Regulation 7 read with Clause A (1) (2) (3) (4) (5) of code of conduct specified under Schedule II of the Broker Regulations and SEBI Circular No. SEBI/MIRSD/CIR/2004 dated January 13, 2004.
Page 4 of 10 personal hearing to the Noticee by issuing a letter dated July 25, 2011 advising her to appear before the undersigned on August 09, 2011 for the personal hearing. When the Noticee failed to appear before the undersigned on the said date another letter dated August 16, 2011 was issued to the Noticee advising him to appear before the undersigned on August 25, 2011 and the Noticee failed to appear before the undersigned again. Therefore, a final opportunity of personal hearing was given to the Noticee vide letter dated August 26, 2011 to appear before the undersigned on September 12,
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Source: SecMarx — sebi:PKK/AO/180/2011. 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.