sebi:VSS/AO-135/2009
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Facts / Headnote
Violation established; penalty of Rs.1,50,000 imposed
Provisions invoked
- s. 15
- s. 15H
- s. 15J
Regulations
- Reg. 3
- Reg. 4
- Reg. 2(1)(c)
- Reg. 4(1)
- Reg. 4(a)
- Reg. 4(2)(a)
- Reg. 4(2)(e)
- Reg. 4(2)(g)
- Reg. 4(2)(b)
Parties
- Mr. Bhavesh Pabari
Holding
The Noticee violated regulations 4(1), 4(2)(a), (b), (e) and (g) of PFUTP by executing synchronized/reversal trades creating artificial volume in MSL and is liable for penalty under section 15HA of SEBI Act, with a penalty of Rs.1,50,000 imposed.
Full text
Page 2 of 17 Rs.204.40 in 24 trading days during the period from September 05, 2003 to October 09, 2003. 3. The role of the brokers and other entities that had traded in the scrip of MSL was scrutinized. It was alleged that through collusion with the brokers, shares of MSL were transacted in such a manner that led to creation of artificial volumes in the scrip and was designed to create a false market leading to significant price movement in the scrip. Hence, it was alleged that one of the entities, namely, Mr. Bhavesh Pabari (hereinafter referred to as ‘Noticee/Bhavesh’) who had traded through M/s. Sanchay Finvest Limited (hereinafter referred to as ‘Sanchay’) in the scrip of MSL created artificial volumes which led to manipulation in the price of the scrip of MSL during the investigation period and consequently, violated the provisions of regulations 4(1), 4 (2) (a), (b), (e) and (g) of SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Markets) Regulations, 2003 (hereinafter referred to as “PFUTP”).
Page 3 of 17 SHOW CAUSE NOTICE, HEARING AND REPLY 6. Show Cause Notice No. EAD-5/VSS/RS/151411/2009 dated January 21, 2009 was issued to the Noticee under rule 4(1) of the Rules to show cause as to why an inquiry should not be held against the Noticee and penalty be not imposed on the Noticee under section 15HA of SEBI Act for the alleged violation specified in the said SCN. However, the same was returned undelivered with remark “person is not staying”. Another Show Cause Notice (hereinafter referred to as “SCN”) No. EAD-5/VSS/RS/159722/2009 dated April 08, 2009 was issued to the Noticee at the same address, receipt of which was duly acknowledged by the Noticee.
Page 4 of 17 10. I am convinced that ample opportunities have been given to the Noticee to explain his case. As per rule 4(7) of the Rules, if any person fails neglects or refuses to appear as required by sub-rule (3) before the Adjudicating Officer, he may proceed with the inquiry in the absence of such person after recording the reasons therefor. Despite having been given ample opportunities, the Noticee has failed to avail the opportunity of personal hearing. I am, therefore, compelled to proceed with the matter ex-parte based on the material available on record.
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Source: SecMarx — sebi:VSS/AO-135/2009. 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.