sebi:VSS/AO-46/2009
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Facts / Headnote
Violation established; penalty of Rs.3,00,000 imposed on the Noticee
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 Jhunjhunwala & Co.
Holding
The Noticee violated regulations 3, 4(1), 4(2)(a), (b), (e), (g), (n) and (o) of PFUTP and clauses A(1)-(4) and B(4)(a) of the Code of Conduct for Stock Brokers by executing synchronized trades creating artificial volume and price in SVL, and was held liable for monetary penalty of Rs.2,00,000 under section 15HA and Rs.1,00,000 under section 15HB, totaling Rs.3,00,000.
Full text
Page 2 of 18 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 Jhunjhunwala & Co., Member, CSE (hereinafter referred to as “Noticee”/”SJC”) 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 read with Regulation 7 of SEBI (Stock Brokers and Sub Brokers) Regulations, 1992 (hereinafter referred to as “Brokers Regulations”).
Page 3 of 18 Noticee under rule 4(1) of the Rules to show cause as to why an inquiry 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 18 reiterated the submissions made vide letter dated September 5, 2008. CONSIDERATION OF ISSUES AND FINDINGS 8. The issues that arise for consideration in the present case are :
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Source: SecMarx — sebi:VSS/AO-46/2009. 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.