sebi:VSS/AO-145/2009
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Facts / Headnote
Violations established; penalty imposed
Provisions invoked
- s. 15
- s. 15H
- s. 15J
Regulations
- Reg. 7
- Reg. 3
- Reg. 4(a)
- Reg. 2
- Reg. 3(b)
- Reg. 4(2)(a)
- Reg. 4(2)(e)
- Reg. 4(2)(g)
- Reg. 4(2)(b)
- Reg. 4(2)(n)
Parties
- Khambatta Securities Ltd.
Holding
Khambatta Securities Ltd. violated regulations 3(b), 4(1), 4(2)(a), (b), (e), (g) and (n) of the PFUTP Regulations and Clauses A(1) to A(5) of the Code of Conduct for Stock Brokers by executing synchronized/reversal trades creating artificial volume and misleading appearance of trading in the scrip of MEL, and was liable for monetary penalty.
Full text
Page 2 of 21 sub-brokers and their clients indulged in synchronized/reversal trades in the said scrip resulting into rise in the volume and price of the scrip and subsequently, a fall in price after the said reversal of trades in the said scrip stopped.
Page 3 of 21 3 AFSL and RDS July 18, 2003 – August 13, 2003 4. It was alleged that one of the entities, viz., Khambatta Securities Ltd. (hereinafter referred to as “Broker/KSL/Noticee”) had violated the provisions of regulations 3(b), 4(1), 4(2)(a), 4(2)(b), 4(2)(e), 4(2)(g) and 4(2)(n) of SEBI (Prohibition of Fraudulent and Unfair Trade Practice relating to Securities Markets) Regulations, 2003 (hereinafter referred to as “PFUTP Regulations”) and Clauses A(1), A(2), A(3), A(4) and A(5) of Code of Conduct for Stock Brokers as specified in Schedule II read with regulation 7 of SEBI (Stock Brokers and Sub Brokers) Regulations, 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 4 of 21 against the Noticee and penalty be not imposed under sections 15HA and 15HB of SEBI Act for the alleged violations specified in the said SCN.
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Source: SecMarx — sebi:VSS/AO-145/2009. 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.