sebi:SD/AO/03/2013
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Facts / Headnote
Violation proved; penalty of Rs.10,00,000 imposed
Provisions invoked
- s. 15
- s. 15H
- s. 15I
- s. 15J
Regulations
- Reg. 4
- Reg. 3
- Reg. 4(1)
- Reg. 15
Parties
- M/s Rajendra Jayantilal Shah Prop. Shri Rajendra Jayantilal Shah
Holding
The Noticee, a sub-broker trading for client Shri Saumil Bhavnagari in the scrip of AEL, violated Regulations 4(1), 4(2)(a), (b), (e), (g) and (n) of PFUTP Regulations and clauses A(1), A(2), D(1), D(4) and D(5) of the Broker Regulations Code of Conduct. A total monetary penalty of Rs.10,00,000 was imposed, comprising Rs.9,00,000 under Section 15HA and Rs.1,00,000 under Section 15HB of the SEBI Act.
Full text
Page 2 of 11 manner that led to creation of artificial volumes in the scrip and was designed to create a false market and distorted market equilibrium leading to spurt in the price of the scrip which did not have any correlation with the performance of the company.
Page 3 of 11 6. Accordingly, a notice to show cause (hereinafter referred to as the ‘SCN’) dated June 23, 2008 under Rule 4 (1) of the Rules was issued to the Noticee asking it to show cause as to why an enquiry should not be held against it in terms of Section 15I of the SEBI Act and penalty be not imposed under Section 15HA and 15HB of the SEBI Act for the alleged violation by it of the abovementioned provisions of the PFUTP Regulations and the Broker Regulations. The said SCN was returned undelivered. The said SCN was subsequently delivered through hand delivery on February 19, 2009.
Page 4 of 11 10. Before proceeding to decide the above issue, it is important to have a look at the abovementioned provisions as they existed at the relevant time, which interalia are reproduced below.
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Source: SecMarx — sebi:SD/AO/03/2013. 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.