sebi:VSS/AO-32/2009
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Facts / Headnote
Violation established; penalty imposed
Provisions invoked
- s. 15
- s. 15H
- s. 15J
Regulations
- Reg. 7
- Reg. 3
- Reg. 2
- Reg. 4(2)(a)
- Reg. 4(2)(e)
- Reg. 4(2)(g)
- Reg. 4(2)(b)
- Reg. 4(2)(n)
- Reg. 4(2)(o)
Parties
- S. K. Khemka, Member, CSE
Holding
The Noticee violated regulations 3, 4(1) and 4(2)(a), (b), (e), (g), (n) and (o) of PFUTP and Clauses A(1)-(4) and B(4)(a) of the Stock Brokers Code of Conduct by executing synchronized trades and cross deals creating artificial volume and price in BIL, and was held liable for monetary penalty of Rs.3,00,000 under sections 15HA and 15HB of the SEBI Act.
Full text
Page 2 of 19 leading to significant price movement in the scrip which lacked presence of any sort of fundamentals. 2. It was alleged that one of the brokers, S. K. Khemka, Member, CSE (hereinafter referred to as “Noticee”/“SKK”) violated the provisions of regulations 3, 4 (1), 4 (2) (a), (b), (e), (g), (n) and (o) of SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Markets) Regulations, 2003 (hereinafter referred to as “PFUTP”) and clauses A (1), (2), (3) and (4) and B (4) (a) of Code of Conduct for Stock Brokers as specified in Schedule II under Regulation 7 of SEBI (Stock Brokers and Sub Brokers) Regulations, 1992 (hereinafter referred to as “Brokers Regulations”).
Page 3 of 19 should not be held against the Noticee and penalty be not imposed on the Noticee under sections 15HA and 15 HB of SEBI Act for the alleged violation specified in the said SCN.
Page 4 of 19 personal hearing on October 17, 2008 at SEBI, Eastern Regional Office, Kolkata vide notice dated August 29, 2008. Mr. Anand Tiwari, Authorized Representative appeared on behalf of the Noticee (hereinafter referred to as “AR”). During the hearing, the Noticee reiterated the submissions made vide letter dated June 04, 2008. The AR further submitted that the price of the share rose gradually within a period of 5 months, which cannot be attributed as manipulation.
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Source: SecMarx — sebi:VSS/AO-32/2009. 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.