sebi:SD/AO/129/2009
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Facts / Headnote
Noticee held liable for violation of PFUTP Regulations; monetary penalty of Rs. 3,00,000 imposed
Provisions invoked
- s. 15H
- s. 15I
- s. 15J
- s. 15
Regulations
- Reg. 3
- Reg. 4
- Reg. 4(1)
- Reg. 4(2)(a)
- Reg. 4(2)(e)
Parties
- Vikas Narnavar
Holding
The Noticee Vikas Narnavar violated Regulations 4(1), 4(2)(a) and 4(2)(e) of the PFUTP Regulations, 2003 by trading with connected clients to create artificial volume and manipulate price. A penalty of Rs. 3,00,000 under Section 15HA of the SEBI Act, 1992 was imposed.
Full text
Page 2 of 13 91.95. Secondly, the major clients dealing in the scrip were connected/related clients viz., Ramniklal Patel, Vikas Narnavar, Rameshchandra Jain, Amul Seth and Jayesh Shah who have dealt through four members viz., Pilot Credit Capital Ltd., Adolf Pinto, Pawan J Choudhri, M/s. Harikishan Hiralal, and have purchased 12,916 shares and sold 14,225 shares accounting for around 58% of market purchases and 64% of market sales during entire period under examination.
Page 3 of 13 declined to Rs.35.15. The volume was the highest i.e., 3005 shares on February 7, 2005. Further, during the said period, price of the scrip witnessed fluctuations opposite to the direction of sensex i.e., when the price was decreasing, sensex was increasing and vice-versa.
Page 4 of 13 Shah. These clients together purchased 12916 shares and sold 14225 shares accounting to 57.78% and 63.64% of the market volume of 22, 352 shares. It was observed that these clients were connected to each other and they traded through more than one broker, the details of which are given as follows: Client Member Gross Purchases Avg Price (Rs.) Gross Sales Avg Price (Rs.) Connection/Relation Ramniklal Patel 10540, R008 Pilot Credit Capital Ltd. 9251 102.15 1425 114.16 The Clients Ramniklal Patel and Jayesh Shah have the same address. Ramniklal Patel 10540, R008 Pawan J Choudhri 10 49.5 300 57.12 Ramniklal patel was introduced by Vikas Narnavar Vikas Narnavar V036, 12424 Adolf pinto 1705 104.24 8625 86.52 Vikas Narnavar was introduced by Ramesh Chandra Jain Vikas Narnavar V036, 12424 Pilot Credit Capital Ltd 300 57.12 0 0
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Source: SecMarx — sebi:SD/AO/129/2009. 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.