sebi:WTM/GA/10/ERO/5/07

SEBI · SEBI · 2005-09-29 · G. ANANTHARAMAN, WHOLE TIME MEMBER

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Facts / Headnote

Penalty imposed: suspension of the certificate of registration of D.K. Khandelwal & Company for a period of four months; order to come into force immediately on expiry of 21 days from the date of the order.

Regulations

• Reg. 4
• Reg. 13(4)
• Reg. 5(1)
• Reg. 13(2)
• Reg. 3
• Reg. 6
• Reg. 4(2)
• Reg. 2
• Reg. 4(2)(a)
• Reg. 4(2)(e)

Parties

• D. K. Khandelwal & Company (registration no. INB 030658016), Member, Calcutta Stock Exchange Association Limited

Holding

The Broker (D.K. Khandelwal & Company) violated Regulation 4(2)(a) and (e) of the FUTP Regulations and Clauses A(1), (2), (3) and 4 of the Code of Conduct under the Broker Regulations by executing continuous cross deals in the shares of Prime Capital Markets Ltd. A penalty of suspension of its certificate of registration for four months was imposed, exceeding the Enquiry Officer's recommendation of five days.

Full text

Home » Enforcement » Orders » Orders of Chairman/Members Enforcement Enforcement▼ ORDER AGAINST D. K. KHANDELWAL & COMPANY, MEMBER, CALCUTTA STOCK EXCHANGE ASSOCIATION LIMITED UNDER REGULATION 13(4) OF SECURITIES AND EXCHANGE BOARD OF INDIA (PROCEDURE FOR HOLDING ENQUIRY BY ENQUIRY OFFICER AND IMPOSING PENALTY) REGULATIONS, 2002 IN RESPECT OF ITS TRANSACTIONS IN THE SHARES OF PRIME CAPITAL MARKETS LIMITED 1.0 BACKGROUND 1.1 It was observed that the price of the shares of M/s Prime Capital Markets Ltd. (hereinafter referred to as PCML) which were listed at the Calcutta Stock Exchange Association (hereinafter referred to as CSE) had increased from Rs. 14.00/- on March 17, 2005 to Rs. 280.40/- on September 15, 2005 i.e an increase of 1903% within a period of 5 mon 28 days. It has been alleged that the financials of PCML were not strong enough for the aforesaid price increase and therefore it, appeared that the said price rise had occ account of manipulation by certain entities/ stock brokers. 1.2             A preliminary analysis of the trading data for the said period at CSE revealed that certain stock brokers namely Shri. Sanju Kabra, Shivam Stock Broking Pvt. Ltd, and M/ Co. (members of CSE) contributed substantially in the total volume of the shares of PCML during the above period. It was further revealed that the said stock brokers e cross deals / synchronized trades among themselves and the same constituted a major portion (about 93%) of trading in the said shares. It was

Sl. No. Name of the client and address Name and address of the director MUMBAI – 400 034. interim order dated September 29, 2005 inter alia directed the aforesaid stock brokers not to buy, sell or deal in securities in any manner, either directly or indirectly till further directions. Pursuant to the receipt of replies from the aforesaid stock brokers and after granting them an

21-Apr-05 13:36:27 21-Apr-05 15:18:23 Broker 500 45 S Broker 25-Apr-05 14:53:37 25-Apr-05 14:53:10 Broker 500 49 B Broker 25-Apr-05 14:53:37 25-Apr-05 14:53:37 Broker 500 49 S Broker 26-Apr-05 14:42:51 26-Apr-05 14:42:37 Broker 1000 53 B Broker 26-Apr-05 14:42:51 26-Apr-05 14:42:51 Broker 1000 53 S Broker 27-Apr-05 15:23:09 27-Apr-05 15:22:56 Broker 500 57.6 B Broker 27-Apr-05 15:23:09 27-Apr-05 15:23:09 Broker 500 57.6 S Broker 28-Apr-05 13:59:59 28-Apr-05 13:59:31 Broker 500 61 B Broker 28-Apr-05 13:59:59 28-Apr-05 13:59:59 Broker 500 61 S Broker 29-Apr-05 15:12:11 29-Apr-05 14:12:13 Broker 500 67 S Broker 29-Apr-05 15:12:11 29-Apr-05 14:12:13 Broker 500 67 B Broker 16-May-05 15:01:33 16-May-05 15:01:17 Broker 100 87 S Broker 16-May-05 15:01:33 16-May-05 15:01:33 Broker 100 87 B Broker 17-May-05 14:44:02 17-May-05 14:32:20 Broker 100 95 S Broker 17-May-05 14:44:02 17-May-05 14:32:20 Broker 100 95 B Broker 18-May-05 15:01:38 18-May-05 15:01:30 Broker 100 103 S Broker 18-May-05 15:01:38 18-May-05 15:01:37 Broker 100 103 B Broker 19-May-05 12:45:24 19-May-05 12:45:09 Broker 100 112 B Broker 19-May-05 12:45:24 19-May-05 12:45:24 Broker 100 112 S Broker 26-May-05 12:58:31 26-May-05 12:58:19 Broker 100 119 B Broker 26-May-05 12:58:31 26-May-05 12:58:32 Broker 100 119 S Broker 9-Jun-05 14:33:34 9-Jun-05 13:59:49 Broker 100 146 B Broker 9-Jun-05 14:33:34 9-Jun-05 13:59:49 Broker 100 146 S Broker 10-Jun-05 13:53:43 10-Jun-05 13:53:27 Broker 200 150 B Broker 10-Jun-05 13:53:43 10-Jun

Source: SecMarx — sebi:WTM/GA/10/ERO/5/07. 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.