sebi:SD/AO/13/2010
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Facts / Headnote
Acquitted - charges not established
Provisions invoked
- s. 15
- s. 15H
- s. 15J
Regulations
- Reg. 3
- Reg. 3(a)
Parties
- M/s. Basmati Securities Pvt. Ltd.
Holding
The Adjudicating Officer held that the Noticee, M/s. Basmati Securities Pvt. Ltd., was not involved in manipulating the scrip of KEWL and did not violate Regulations 3, 4(1) and 4(2)(a) of the PFUTP Regulations, and therefore the charges in the SCN do not stand established.
Full text
Page 2 of 7 2. It was observed by Investigation Department, SEBI that there were 999 instances of trades which were executed at a price higher by 1 % or more than the last traded price. Out of these M/s. Basmati Securities Pvt. Ltd. (hereinafter referred to as “Noticee”) was found to have been involved in 48 instances which were most in number by one entity. It is also alleged that the Noticee had off market transactions with one of the entity who had given contact telephone number same as that of KEWL in the KYC Form submitted to his Depository Participant (DP). The details of off market transactions entered by and between various entities were provided to Noticee as an Annexure 1 to Show Cause Notice (SCN).
Page 3 of 7 NOTICE, REPLY & HEARING 5. A Show Cause Notice (hereinafter referred to as ‘SCN’) dated January 15, 2009 was issued to the Noticee in terms of the provisions of Rule 4 of Adjudication Rules requiring the Noticee to show cause as to why an enquiry should not be held for the violations alleged to have been committed by the Noticee. Noticee vide its letter dated January 21, 2009 submitted its reply to said SCN. The Noticee in its reply denied all the averments and statements made in the said SCN. The Noticee submitted that there was no malafide motive behind for dealing in the said scrip. The Noticee’s main object was to do investment in shares and securities. During 2004-2005 Notciee had invested in many companies such as Shoppers Stop, SAIL, Arvindmill, TATA Finance, Max India Ltd. etc. Noticee was regular trader in securities for the period from 2004-2005. Noticee expected good future growth of the company (KEWL) and accordingly invested in the said scrip. The basis of purchase and selling in the said scrip was earning the profit from the said investment.
Page 4 of 7 CONSIDERATION OF ISSUES:- 7. The issues that arise for consideration in present case are:- a) Whether the Noticee has violated the provisions of Regulations 3, 4(1) and 4(2)(a) of PFUTP Regulation?
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Source: SecMarx — sebi:SD/AO/13/2010. 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.