sebi:PKK/AO/268/2010
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Facts / Headnote
Penalty imposed on Noticee for violation of PFUTP Regulations
Provisions invoked
- s. 15
- s. 15H
- s. 15J
Regulations
- Reg. 4
- Reg. 3
- Reg. 4(1)
Parties
- Shri Sunil Kuril
Holding
The Noticee, Shri Sunil Kuril, violated Regulations 4(1), 4(2)(a), (b), (e) & (g) of the PFUTP Regulations by executing fraudulent reversal trades in the scrip of AEL that created artificial volume and a false market, and a monetary penalty of Rs. 1,00,000/- was imposed under Section 15HA of the Act.
Full text
Page 2 of 7 2. The role of the main brokers and clients who had traded heavily during the period under investigation in the scrip of AEL was scrutinized. The Investigations revealed that certain entities, including Shri Sunil Kuril (hereinafter referred to as the ‘Noticee’), transacted in the shares of AEL in a fraudulent manner that led to creation of artificial volume and a false market. Their trading distorted market equilibrium leading to spurt in the price which did not have any correlation with the performance of the company.
Page 3 of 7 Notice, Reply & Personal Hearing 5. The AO issued a Notice bearing no. EAD-2 /SD/AB/129607/2008 dated June 23, 2008 (hereinafter referred to as ‘SCN’) to the Noticee in terms of Rule 4 of the Adjudication Rules requiring him to show cause as to why an inquiry should not be held against him for the alleged violations.
Page 4 of 7 Consideration of Issues, Evidence and Findings 8. I have carefully perused the charges made against the Noticee mentioned in the SCN and the materials and documents available on record. The issues that arise for consideration in the present case are:
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Source: SecMarx — sebi:PKK/AO/268/2010. 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.