sebi:SPL/AO/SKS/SG/DCR/05/2010
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Facts / Headnote
Allegations not established; matter disposed of with no penalty
Provisions invoked
- s. 15
- s. 19
- s. 15H
Regulations
- Reg. 4
- Reg. 3
- Reg. 4(1)
- Reg. 15
- Reg. 17
Holding
The alleged violations of the PFUTP Regulations and Broker Regulations were held not established against the noticee and the matter was accordingly disposed of without penalty.
Full text
Page 2 of 10 C Thakkar to indulge in fictitious trades by transferring shares in the off market directly from his own account to Shri. Ramesh K Jain, which contributed to consistent and significant fall in price of the scrip and distorted the market equilibrium by which it had violated the provisions of Regulation4(1) and 4(2) (b), and (g) of SEBI (Prohibition of Fraudulent and Unfair Trade Practices) Regulations, 2003 (hereinafter referred to as “PFUTP Regulations”) and Regulation 15 read with Clause A (1) and (2) of code of conduct specified under Schedule II of the SEBI (Stock brokers and sub- brokers Regulation, 1992. (hereinafter referred to as “Brokers Regulations”), and therefore, liable for monetary penalty under sections 15HA and 15HB of Securities and Exchange Board of India Act, 1992 (hereinafter referred to as “SEBI Act”).
Page 3 of 10 alleged violations of Regulation 4(1) and 4(2) (b), and (g) of PFUTP Regulations, 2003 and Regulation 15 read with Clause A (1) and (2) of code of conduct specified under Schedule II of the SEBI (Stock brokers and sub- brokers Regulation, 1992. The said SCN was sent by Registered Post Acknowledgement Due and the service of the same is available on record.
Page 4 of 10 c. In the facts and circumstances of the case we deny that we have failed to maintain due care and diligence while placing orders for our client Shri Madhusudhan C. Thakkar to indulge in fictitious trades by transferring shares in the off Market directly from our own account to Shri Ramesh k. Jain. We say and submit that we have not indulged in any fraudulent or an unfair trade practice in securities. We have not dealt in the scrip in question not intended to effect transfer of beneficial ownership or intended to operate only as a device to inflate, depress or cause fluctuations in the price of such security for wrongful gain or avoidance of loss. Even from the
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Source: SecMarx — sebi:SPL/AO/SKS/SG/DCR/05/2010. 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.