sebi:SP/AO-02/2010
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Facts / Headnote
Penalty imposed on the Noticee under section 15HA of SEBI Act, 1992 for violations of PFUTP Regulations and Code of Conduct for Stock Brokers
Provisions invoked
- s. 15H
- s. 15J
- s. 15
Regulations
- Reg. 7
- Reg. 3
- Reg. 4
- Reg. 4(1)
Holding
The Noticee (a stock broker) violated Regulations 4(1), 4(2)(a) and 4(2)(e) of the PFUTP Regulations and Regulation 7 read with clause A(1 to 5) of the Code of Conduct under Schedule II of the SEBI (Stock Brokers and Sub Brokers) Regulations, 1992. A penalty of Rs. 5,00,000 was imposed under section 15HA of the SEBI Act, 1992.
Full text
2 28.95 on March 26, 2008. There were no corporate announcements made by the company during the investigation period. 3. Investigations revealed that the Praveen Venugopal group comprising of the following clients-Praveen Venugopal, Pratik Sanghvi, 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 brokers as given below in the table:
3 shares to Sandeep Narang in off market deals. Arpit Tibrewala transferred shares to Praveen Venugopal 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.
4 during the patch. Price moved from Rs. 70.35 on December 24, 2007 to Rs 118.65 on January 17, 2008. 8. Analysis of trade and order log revealed that the price of the scrip went up during Patch I due to buy orders placed at a price higher than the last traded price. Analysis was done for the orders placed at price more than Rs.2.0. It revealed that the total no of 115 buy orders were placed at a price higher than the last traded price for 12250 shares and out of above orders 12 were first orders and 103 were intraday orders placed by 9 brokers.
You have read the preview. Create a free account to read the full order, track this party, and analyse it in Ontology.
Free accounts include 10 searches/day with full order access.
Source: SecMarx — sebi:SP/AO-02/2010. 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.