sebi:SD/AO/01/2012
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Facts / Headnote
Violation of Regulations 4(1) and 4(2)(a),(b),(e),(g) of PFUTP Regulations established; monetary penalty of Rs. 10,00,000 imposed on the Noticee under Section 15HA of the SEBI Act.
Provisions invoked
- s. 15
- s. 15H
- s. 15J
Regulations
- Reg. 4
- Reg. 3
- Reg. 4(1)
Parties
- Shri Saumil A. Bhavnagari
- V & S Intermediaries (VSI)
Holding
The Noticee violated Regulations 4(1) and 4(2)(a),(b),(e),(g) of the PFUTP Regulations by executing reversal and synchronized trades in the scrip of AEL that created artificial volume without transfer of beneficial ownership, and is liable for a monetary penalty of Rs. 10,00,000 under Section 15HA of the SEBI Act.
Full text
Page 2 of 11 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 transacted in the shares of AEL in a fraudulent manner that led to creation of artificial volume and price rise in the scrip. Shri Saumil A. Bhavnagari (hereinafter referred to as the Noticee) is allegedly one such entity and he traded in the said manner in his own name as well as his sole proprietary concern, V & S Intermediaries (hereinafter referred to as ‘VSI’).
Page 3 of 11 Notice, Reply & Personal Hearing 5. The undersigned issued show cause notices dated June 23, 2008 (hereinafter referred to as ‘SCNs’) to the Noticee and VSI in terms of Rule 4 of the Adjudication Rules requiring them to show cause as to why an inquiry should not be held against them for the alleged violations.
Page 4 of 11 Noticee and VSI. As a sole proprietary concern does not have a separate identity other than that of its sole proprietor, the trades executed in the name of VSI have been taken as trades of the Noticee, he being the sole proprietor of VSI and this order shall dispose of both of the separate adjudication proceedings initiated against the Noticee and VSI. In view of the above, I am proceeding with the inquiry taking into account all the documents and material as available on record.
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Source: SecMarx — sebi:SD/AO/01/2012. 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.