sebi:VSS/AO-95/2009
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Facts / Headnote
Violations established; total monetary penalty of Rs.5,00,000 imposed
Provisions invoked
- s. 15A
- s. 15
- s. 15H
- s. 15J
- s. 12
Regulations
- Reg. 7
- Reg. 3
- Reg. 6
- Reg. 2
- Reg. 4(2)(a)
- Reg. 4(2)(e)
- Reg. 4(2)(g)
- Reg. 4(2)(b)
- Reg. 8(1)
- Reg. 4(2)(n)
- Reg. 4(2)(o)
Parties
- P. K. Agarwal & Co., Member, CSE
Holding
The Noticee violated sections 11C(2), (3) and (5) of SEBI Act and regulation 8(1) of PFUTP by not complying with summons, and violated regulations 3, 4(1), 4(2)(a), (b), (e), (g), (n) and (o) of PFUTP and Code of Conduct A(1)-(4) and B(4)(a) by executing manipulative cross/synchronized deals, and is liable for penalty under sections 15A(a), 15HA and 15HB aggregating Rs.5,00,000.
Full text
Page 2 of 21 volumes in the scrip and was designed to create a false market leading to significant price movement. 2. It was alleged that the one of the brokers, P. K. Agarwal & Co., Member, CSE (hereinafter referred to as “Noticee”) was summoned by the Investigating Authority, SEBI (hereinafter referred to as “IA”) to provide certain information pertaining to its trading in the scrip of CFL during the investigation period. The Noticee acknowledged receipt of the letter and the summons but did not provide any information. Therefore, it was alleged that it had violated regulation 8(1) of SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Markets) Regulations, 2003 (hereinafter referred to as “PFUTP”) and sections 11 C (2), (3) and (5) of Securities and Exchange Board of India Act, 1992 (hereinafter referred to as “SEBI Act”).
Page 3 of 21 APPOINTMENT OF ADJUDICATING OFFICER 5. The undersigned was appointed as Adjudicating Officer vide order dated March 26, 2008 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 provisions of SEBI Act, PFUTP and Brokers Regulations. SHOW CAUSE NOTICE, HEARING AND REPLY
Page 4 of 21 • I have obtained ‘Know your Client’ form and allotted a unique code to each client before executing any trade, by maintaining high standard of integrity, promptitude and fairness in the conduct of all his business. • All transactions were made in respective codes of clients only and none of the trades were done for other than client and as per rate reflected in C-Star (Terminal of CSEA) and souda were made as per instruction of client duly registered with us by client agreement form. I neither create any artificial price for client nor suggest any rate to them. My work is only to execute the transaction as per instruction of clients who are duly registered with me and rate reflected in C-Star.
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Source: SecMarx — sebi:VSS/AO-95/2009. 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.