sebi:WTM/GA/140/ISD/02/07
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Facts / Headnote
Major penalty of suspension of certificate of registration of both noticees for a period of six months imposed; order to come into force on expiry of 21 days from date of order.
Regulations
- Reg. 4
- Reg. 13(4)
- Reg. 5(1)
- Reg. 13(2)
- Reg. 3
- Reg. 4(b)
- Reg. 47
- Reg. 2
Parties
- Shri Girish S Mehta (Registration No. INB030451228, trade name M/s Mehta & Ajmera), Member, Calcutta Stock Exchange Association Ltd.
- Shri Himanshu Ajmera (Registration No. INB030451326, trade name M/s Mehta & Ajmera), Member, Calcutta Stock Exchange Association Ltd.
Holding
The Broker violated regulation 4(b) and (c) of the FUTP Regulations by executing synchronized deals on January 6, 2000 and cross deals on March 14, 15 and 16, 2000 in DSQ Industries Ltd. creating artificial market, and a major penalty of suspension of registration for six months was imposed on both partners.
Full text
Home » Enforcement » Orders » Orders of Chairman/Members Enforcement Enforcement▼ ORDER UNDER REGULATION 13(4) OF SECURITIES AND EXCHANGE BOARD OF INDIA (PROCEDURE FOR HOLDING ENQUIRY BY ENQUIRY OFFICER AND IMPOSING
CALCUTTA STOCK EXCHANGE ASSOCIATION LTD. IN ITS DEALINGS IN THE SHARES OF DSQ INDUSTRIES LTD. WTM/GA/140/ISD/02/07 1.0 BACKGROUND 1.1 The shares of DSQ Industries Ltd. (hereinafter referred to as DSQ), are inter alia listed on the Calcutta Stock Exchange Association Limited (hereinafter referred to as CSE). DSQ Industries Ltd. is group concern of Shri Dinesh Dalmia, main promoter of DSQ Software Ltd. It was observed that during the period January 2000 to March 2000, the price of the shares of DSQ went up from Rs.97/- to Rs. 428/-. It was also noticed that in most of the trading sessions during the said above period the price of the shares of DSQ was in the upper circuit filter compared to the previous day's closure. 1.2 Inter alia, in the above facts and circumstances, Securities and Exchange Board of India (hereinafter referred to as SEBI) conducted an investigation to look into the alleged manipulation in the shares of DSQ and to look into the possible violations of the provisions of Securities and Exchange Board of India Act, 1992 (hereinafter referred to as the Act), Securities and Exchange Board of India (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 1995 (hereinafter referred to as the FUTP Regulations) and Securities and Exchange Board of India (Stock Brokers and Sub-Brokers) Regulations,1992 ( hereinafter referred to as the Broker Regulations). 1.3 Shri Girish S Mehta & Shri. Himanshu Ajmera holds certificates of regi
A. Synchronized deals executed on January 06, 2000: The Broker had sold 5,14,000 shares of DSQ to Titan Stock Broking Pvt. Ltd. on January 06, 2000 in a synchronized manner. The client of the Broker was M/s Greenfield Investments Ltd., an Overseas Corporate Body (OCB). The said Greenfiled Investments Ltd. was holding 47.87% of the capital of DSQ as on September 28, 2000 and its address was that of DSQ and DSQ Holdings (associate of DSQ). The details of the said transactions are mentioned below: Trade Date Trade Time Member Name Buy Or Sell Qty Price Counter Party Name 06-01-2000 2:59:07 PM TSBPL * B 100 104 MEHTA & AJMERA 06-01-2000 2:59:07 PM TSBPL B 9900 104 MEHTA & AJMERA 06-01-2000 2:59:07 PM MEHTA & AJMERA S 100 104 TSBPL 06-01-2000 2:59:07 PM MEHTA & AJMERA S 9900 104 TSBPL 06-01-2000 2:59:11 PM TSBPL B 100 104 MEHTA & AJMERA 06-01-2000 2:59:11 PM TSBPL B 9900 104 MEHTA & AJMERA 06-01-2000 2:59:11 PM MEHTA & AJMERA S 100 104 TSBPL 06-01-2000 2:59:11 PM MEHTA & AJMERA S 9900 104 TSBPL 06-01-2000 2:59:18 PM TSBPL B 100 104 MEHTA & AJMERA 06-01-2000 2:59:18 PM TSBPL B 9900 104 MEHTA & AJMERA 06-01-2000 2:59:18 PM S 9900 104 TSBPL
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Source: SecMarx — sebi:WTM/GA/140/ISD/02/07. 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.