sebi:VSS/AO-181/2009
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Facts / Headnote
Alleged violations not established; matter disposed of without penalty
Provisions invoked
- s. 15
- s. 15J
Regulations
- Reg. 7
- Reg. 4
- Reg. 4(1)
- Reg. 5
Parties
- PSJ Securities Pvt. Ltd.
Holding
The Adjudicating Officer held that the alleged violations of PFUTP Regulations and Brokers Regulations by PSJ Securities Pvt. Ltd. in scrips AI, AD, Havells, Tasc and Lyka were not established and disposed of the matter accordingly.
Full text
Page 2 of 14 had indulged in synchronization of deals/circular trading in the shares of these scrips in such a manner that led to creation of artificial volumes and impacted the price of these scrips. The entities found to have been involved in the alleged manipulation and against whom action was initiated are as under:-
Page 3 of 14 Services Ltd. Invest Ltd. 12 Neelam S K Bansal Singhal Cpital Services Ltd. Kajaria Ceramics Ltd. 3. It was alleged that one of the brokers, viz., PSJ Securities Pvt. Ltd. (hereinafter referred to as “PSJ/Noticee”), Member of NSE who traded in the scrip of Aarti Industries Ltd. (hereinafter referred to as “AI”), Aarti Drugs Ltd. (hereinafter referred to as “AD”), Havells India Ltd. (hereinafter referred to as “Havells”), Lyka Labs Ltd. (hereinafter referred to as “Lyka”) and Tasc Pharmaceuticals Ltd. (hereinafter referred to as “Tasc”) on behalf of Mr. Nirav M Shah (hereinafter referred to as ‘Mr. Nirav’) and Mr. Shailesh S Jhaveri (hereinafter referred to as ‘Mr. Shailesh’) and - (hereinafter collectively referred to as “Clients”) had violated the provisions of regulations 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 Practices 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 (hereinafter referred to as “Brokers Regulations”), and therefore, liable for monetary penalty under sections 15HA and 15 HB of Securities and Exchange Board of India Act, 1992 (hereinafter referred to as “SEBI Act”).
Page 4 of 14 provisions of SEBI Act, PFUTP Regulations and Brokers Regulations. 5. Consequent upon the transfer of Mr. Piyoosh Gupta, the undersigned has been appointed as the Adjudicating Officer vide Order dated November 19, 2007 SHOW CAUSE NOTICE, HEARING AND REPLY
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Source: SecMarx — sebi:VSS/AO-181/2009. 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.