sebi:WTM/AB/IVD/ID2/14517/2021-22
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Provisions invoked
- s. 19
- s. 12A
- s. 11
- s. 2(27)
- s. 80J
- s. 10(27)
Regulations
- Reg. 7
- Reg. 3
- Reg. 27
- Reg. 3(a)
- Reg. 26
- Reg. 28
- Reg. 24
- Reg. 25
- Reg. 27(5)
- Reg. 28(1)
Parties
- M/s. Grishma Securities Private Limited
Holding
On the extracted findings, GSPL facilitated 13 synchronized trades between clients Anil Dave and Vimal Patel and used excess funds collected from Anil Dave for F&O margin payments to IL&FS and for payouts to Vimal Patel.
Full text
Order in respect of M/s. Grishma Securities Private Limited Page 2 of 32 and SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 2003 (hereinafter referred to as “PFUTP Regulations, 2003”). Pursuant to the same, SEBI initiated proceedings against GSPL under the provisions of the SEBI (Intermediaries) Regulations, 2008 (hereinafter referred to as “Intermediaries Regulations”) and appointed a Designated Authority (DA) under Regulation 24 of the Intermediaries Regulations to enquire into various alleged violations. The DA issued a show cause notice dated November 19, 2014 to GSPL which alleged the following:
Order in respect of M/s. Grishma Securities Private Limited Page 3 of 32 trades in the scrip of Agre Developers (now known as Future Media Networks Ltd.), Advanta Ltd, Monsanto India Ltd and Hathway Cable Datacom Ltd accounted for around 94.7%, 20.36%, 25.25% and 7.74% of the day's market volume respectively for the date 16/11/2011. In NSE, the synchronized trades in the scrip of Agre Developers (now known as Future Media Networks Ltd) accounted for around 58.87% of the day's market volume for the date 16/11/2011. Therefore, it was observed that the synchronized trades executed by GSPL on behalf of Mr. Anil Dave and Mr. Vimal Patel created artificial volumes in the said scrips. Investigation further revealed that there were transfers of funds from the bank account of Mr. Anil Dave with Axis Bank to the account of Mr Vimal Patel.
Order in respect of M/s. Grishma Securities Private Limited Page 4 of 32 (i) On November 15, 2011, the account was deposited with Rs. 5200 by cash. Subsequently, on November 18, 2011, there was a deposit of Rs. 1 crore in Mr Anil Dave's account from the account of United Enterprises. On November 21, 2011, the said amount of Rs. 1 Crore was transferred to various accounts of GSPL in 4 tranches of Rs. 25 lakh as mentioned below, leaving a balance of Rs.5200 in the said account: Rs. 50 lakh was transferred to the account of GSPL (NSE F&O Client Account). Rs. 25 lakh was transferred to the account of GSPL (BSE Client Account). Rs. 25 lakhs was transferred to the account of GSPL (NSE Client Account).
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Source: SecMarx — sebi:WTM/AB/IVD/ID2/14517/2021-22. 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.