sebi:VSS/AO-30/2008
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Facts / Headnote
Noticee held liable for violation of PFUTP; monetary penalty of Rs.1,00,000 imposed
Provisions invoked
- s. 15
- s. 15H
- s. 15J
Regulations
- Reg. 4
- Reg. 4(2)
- Reg. 2
- Reg. 47
Parties
- M/s Globe Stocks and Securities Ltd.
Holding
GSSL was held to have violated regulations 4(2)(a) and 4(2)(e) of PFUTP by indulging in synchronized trades creating artificial volumes in the scrip of GBFL, and a monetary penalty of Rs.1,00,000 under section 15HA of SEBI Act was imposed.
Full text
Page 2 of 14 1. GBFL M/s Goenka Business and Finance 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 December 12, 2006 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 violation of regulations 4(2) (a) and 4(2) (e) of PFUTP committed by KLFL.
Page 4 of 14 Ltd.(hereinafter referred to as “PCTL”) and Mr.Amit Kumar Khemka is also a Director of M/s Knitworth Lease Finance Limited (hereinafter referred to nas ”KLFL”) .Our company has five Directors two out of them are the Directors of PCTL and only one of them is the Director of KLFL.This does not mean that all the three companies are under the same management since the majority of the Directors of our company do not constitute the majority of the Directors of the other two companies. d. You have mentioned that the address of our company i.e.8, Ganesh Chandra Avenue, Saha Court, Kolkata-700 013 is the same with the other two companies. But the Registered offices of many companies are located in the building Saha Court.So it is quite conveniently possible that the Registered office of the other two companies i.e.PCTL and KLFL are located in the same building i.e.Saha Court. e. You have also mentioned that the two our Directors i.e.Mr.Vishnu Kumar Fogla and Mr.Anil Kumar Fogla are also the Directors of GBFL but these two Directors do not take any part in the day to day affairs of the company. f. We would further like to mention that there are very few brokers in Kolkata who are active or are trading in shares one of them is ASBPL who is our broker.
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Source: SecMarx — sebi:VSS/AO-30/2008. 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.