sebi:SP/AO-02/2009
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Facts / Headnote
Noticee held to have violated PFUTP Regulations and penalty of Rs.5,00,000 imposed under Section 15HA
Provisions invoked
- s. 15
- s. 15H
- s. 15J
Regulations
- Reg. 3
- Reg. 4
- Reg. 4(1)
- Reg. 4(2)
Parties
- Pratik Sanghvi
Holding
The Noticee violated regulations 4(1), 4(2)(a) and (e) of PFUTP by creating artificial price and volume in concert with the Praveen Venugopal group. A monetary penalty of Rs.5,00,000 under section 15HA of SEBI Act was imposed on the Noticee.
Full text
March 26, 2008. There were no corporate announcements made by the company during the investigation period. 3. Investigations revealed that Praveen Venugopal group comprising of Pratik Sanghvi (hereinafter referred to as the “Noticee”) and the following other clients: Praveen Venugopal, Spectrum Chemicals Pvt Ltd, Satyanarain Rathi, Sunil Bhandari, Premgiri Goswami, Arpit Tibrewala, Rekha Bhandari and Sandeep Narang was found to be dealing in the scrip and accounted for 25.87% of the gross purchases and 22.68% of gross sales during the period of examination. The abovementioned clients traded through the following brokers as given below in the table:
Rekha Bhandari Arihant Capital Market Ltd 12249 Sandeep Narang DSE Financial Service Ltd 15352 Total 409920 364413 4. Connection between the members of the Praveen Venugopal group is as follows: Introducer of Praveen Venugopal and the Noticee is Arun Goyal. The Noticee is the Director of the Company, Spectrum Chemicals Pvt Ltd. Satyanarain Rathi and Sunil Bhandari transferred shares to Praveen Venugopal in off market deals. Premgiri Goswami transferred shares to Sandeep Narang in off market deals. Arpit Tibrewala transferred shares to the Noticee in off market deals. Rekha Bhandari, as submitted by her, is the wife of Sunil Bhandari and they have common telephone number. Sandeep Narang received shares in off market deals from Praveen Venugopal & Premgiri Goswami.
190541 shares through member Sanjay C Baxi Securities Ltd which accounted for 18.3% of volume during Patch I. The top 5 selling clients together sold 455934 shares accounting for 43.90% of the market volume during the above patch. The Noticee, one of the top two selling clients, sold 198248 shares through Sanjay C. Baxi Securities Ltd which is 19.09% of market volume during Patch I.
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Source: SecMarx — sebi:SP/AO-02/2009. 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.