sebi:WTM/GA/14/ISD/5/07
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Facts / Headnote
Major penalty imposed: suspension of certificate of registration of M/s. Mittal Securities Pvt. Ltd. (Registration no. INB 230653135) for a period of four months, effective from expiry of 21 days from the date of the order.
Provisions invoked
- s. 19
- s. 15
- s. 25
Regulations
- Reg. 7
- Reg. 4
- Reg. 13(4)
- Reg. 5(1)
- Reg. 13(2)
- Reg. 4(a)
- Reg. 199
- Reg. 47
Parties
- M/s. Mittal Securities Pvt. Ltd.
Holding
M/s. Mittal Securities Pvt. Ltd. violated Regulation 4(a) to (d) of the FUTP Regulations, 1995 and Clause A(1) to (4) of the Code of Conduct specified in Schedule II read with Regulation 7 of the SEBI (Stock Brokers and Sub-Brokers) Regulations, 1992, by executing synchronized trades in the shares of DSQ Software Ltd. for its client Hulda Properties and Trades Ltd., and a major penalty of four months' suspension of its certificate of registration was imposed.
Full text
Page 2 of 37 M/s. Square D Software Limited with its registered office at Kolkata. Thereafter, the registered office of the company was shifted from Kolkata to Chennai with effect from August 16, 1994. The name of the company was subsequently changed from M/s. Square D Software Limited to M/s. DSQ Software Limited with effect from April 01, 1997.
Page 3 of 37 Rs.630 crores, calculated by taking into account the average price of the shares of the company at the relevant time. Thus, the promoters/ directors of the company generated funds by trading in the shares of the company through their associates. The above mentioned associates of Shri Dinesh Dalmia sold large quantities of the shares of the company through a set of stock brokers at NSE and BSE and the said shares were bought back by the said associates at the same time through different set of stock brokers inter alia by way of synchronized trades. It is further seen that the stock brokers through which the aforesaid sales were done, made payment to the sellers (associates of the company) even before they received the pay out from the clearing corporation, and that to cover the same, the rate of brokerage was adjusted to the time of payment.
Page 4 of 37 including The Calcutta Police and Central Bureau of Investigation. (ii) Shri Dinesh Dalmia shall buy 1.30 crore shares of DSQ Software Ltd, circulated into the secondary market within a period of 45 days and retain the same in a separate demat account to be opened for the purpose, till permission for reduction in capital is obtained by the company from the competent authority.
You have read the preview. Create a free account to read the full order, track this party, and analyse it in Ontology.
Free accounts include 10 searches/day with full order access.
Source: SecMarx — sebi:WTM/GA/14/ISD/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.