sebi:PKK/AO/38/2011
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Facts / Headnote
Penalty of Rs. 2,00,000 imposed on the Noticee under Section 15HA of the SEBI Act
Provisions invoked
- s. 15
- s. 15H
- s. 15I
- s. 15J
Regulations
- Reg. 3
- Reg. 4
- Reg. 4(1)
- Reg. 15
Parties
- Falgun Finvest (Proprietor: Ms. Charu Niraj Sanghvi)
Holding
The Noticee violated Regulations 4(1) and 4(2)(p) of the PFUTP Regulations and Clauses A(1) & (2) of the Code of Conduct for Sub-Brokers read with Regulation 15 of the Brokers Regulations and is liable for monetary penalty under Section 15HA of the SEBI Act, with a penalty of Rs. 2,00,000 imposed.
Full text
Page 2 of 8 2. The investigation revealed that Falgun Finvest (Proprietor: Ms. Charu Niraj Sanghvi), (hereinafter referred to as the ‘Noticee’), sub broker of M/s. Ventura Securities Limited, is the major selling member in the scrip trading for its various clients accounting for 46% of the total traded quantity during the period under investigation. The Noticee’s clients, namely Vijay V Wadhwa, Ritu Wadhwa, Vinita V Wadhwa and Sanjay R Chhabria, had collectively sold 24,99,600 shares of Eltrol Limited, in off market transactions during the period from February 2004 to March 2004. The Noticee had allegedly issued falsified confirmation memos/notes in respect of the abovementioned off-market transactions. The said falsified confirmation memos/notes were found to contain details like Order No., Trade No., Trade Time and such other details giving the impression that the trades mentioned therein had taken place on the Exchange.
Page 3 of 8 Section 15HA of the SEBI Act, the alleged violation of the provisions of Regulations 4 (1) and 4 (2) (p) of the PFUTP Regulations and Clauses A(1) & (2) of the Code of Conduct for Sub-Brokers as specified under Schedule II read with Regulation 15 of the Brokers Regulations. Consequent to the transfer of Mr. Deore to the Enforcement Department, SEBI vide order dated August 17, 2010 appointed the undersigned as the AO in the instant matter.
Page 4 of 8 affixture on December 11, 2010. The Noticee did not appear for the hearing. 8. In view of the above, I am proceeding with the inquiry taking into account the documents and material as available on record.
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Source: SecMarx — sebi:PKK/AO/38/2011. 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.