sebi:VSS/AO-17/2008
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Facts / Headnote
Penalty imposed on the Noticee for violation of regulations 4(2)(a) and 4(2)(e) of PFUTP Regulations, 2003
Provisions invoked
- s. 15
- s. 15H
- s. 15J
Regulations
- Reg. 4
- Reg. 4(2)
- Reg. 2
- Reg. 47
Parties
- M/s Karikish Vyaper Pvt. Ltd. (KVPL)
Holding
The Noticee KVPL was held to have violated regulations 4(2)(a) and 4(2)(e) of the PFUTP Regulations, 2003 by indulging in synchronized trades in the scrip of GSSL, thereby creating artificial volumes and a false market, and was liable for a monetary penalty under section 15HA of the SEBI Act.
Full text
Page 2 of 14 1. GSSL M/s Globe Stocks and Securities Limited 2. ASBPL M/s Ashish Stock Broking Pvt. Ltd. 3. SK M/s Sunil Kedia
Page 3 of 14 APPOINTMENT OF ADJUDICATING OFFICER 5. Mr. Piyoosh Gupta was appointed as Adjudicating Officer vide order dated January 17, 2007 under section 15 I of SEBI Act read with rule 3 of SEBI (Procedure for Holding Inquiry and Imposing Penalties by Adjudicating Officer) Rules, 1995 (hereinafter referred to as ‘Rules’) to inquire into and adjudge the alleged violations of regulations 4(2) (a) and 4(2) (e) of PFUTP committed by KVPL.
Page 4 of 14 9. In the interest of natural justice and in order to conduct an inquiry as per rule 4 (3) of the Rules, the Noticee was granted an opportunity of personal hearing on April 23, 2008 at SEBI’s Eastern Regional Office, Kolkata vide notice dated March 18, 2008. Mr. Anand Kumar Tiwari, Partner, S.K. Agarwala & Co., Chartered Accountants, Advocates & Legal consultants, the authorized representative of the Noticee, appeared on behalf of the Noticee (hereinafter referred to as “AR”). During the hearing, the AR reiterated the submissions made vide letter dated February 08, 2008. The AR submitted that KVPL had dealt in the shares of GSSL to make some profits having regard to the prospects of the company and did not have any unfair intention. When queried as to whether Mr. Deepak Gupta and Mr. Prabhat Goyal, Directors of KVPL are also Directors on the Board of M/s Ideal Motor and Finance Pvt. Ltd. (hereinafter referred to as “IMFL”) and M/s PRJ Finance Pvt. Ltd., (hereinafter referred to as “PFPL”), who have also traded in the scrip of GSSL, the AR confirmed the same.
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Source: SecMarx — sebi:VSS/AO-17/2008. 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.