sebi:WTM/GA/162/ERO/3/07

SEBI · SEBI · 2002-02-28 · G. Anantharaman, Whole Time Member

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 of suspension of certificate of registration for a period of six months imposed

Provisions invoked

• s. 19

Regulations

• Reg. 7
• Reg. 4
• Reg. 13(4)
• Reg. 5(1)
• Reg. 13
• Reg. 4(a)
• Reg. 199

Parties

• Lexus Shares & Stock Brokers Pvt. Ltd

Holding

Lexus Shares & Stock Brokers Pvt. Ltd violated Regulations 4(a) and (b) of the FUTP Regulations and Clauses A(1), (2) and (4) of the Broker Code of Conduct, and its certificate of registration (INB031017632) is suspended for six months.

Full text

Page 2 of 15 of the shares of the said company showed a downward trend and reached Rs.27.05/- on February 28, 2002. 1.2 In view of the aforesaid unusual price movement noticed in the shares of the company, Securities and Exchange Board of India (hereinafter referred to as SEBI) conducted an investigation in respect of buying, selling and dealing in the shares of the company and to enquire into whether the said company, other intermediaries/persons associated with the buying, selling and dealing in the shares of the company contravened the provisions of 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), Securities and Exchange Board of India (Stock Brokers and Sub-Brokers) Regulations, 1992 (hereinafter referred to as the Broker Regulations), Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations,1997, (hereinafter referred to as the ‘Takeover Regulations’), Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations 1992. 1.3 The investigation conducted by SEBI found that certain members of CSE namely, Shri. Ballabh Dass Daga, Bubna Stock Broking Services Ltd., D.B & Co, Lexus Shares & Stock Brokers Pvt. Ltd. and Prakash Baid Securities Pvt. Ltd. traded substantially in the shares of the company and contributed 87% of the total turnover in the said shares at CSE durin

Page 3 of 15 that both the buy and sell orders were executed by the Broker in its single terminal at the same time with the same price and quantity with most of the trades being client to client transactions.

Page 4 of 15 1-Aug-01 14:24:53 14:24:58 360688288 838 2500 2.30 B 1-Aug-01 14:24:58 14:24:58 360688289 838 2500 2.30 S 1-Aug-01 14:24:53 14:24:58 360688288 839 2500 2.30 B 1-Aug-01 14:24:58 14:24:58 360688289 839 2500 2.30 S 1-Aug-01 14:24:53 14:24:58 360688288 840 2500 2.30 B 1-Aug-01 14:24:58 14:24:58 360688289 840 2500 2.30 S 1-Aug-01 14:24:53 14:24:58 360688288 841 2500 2.30 B 1-Aug-01 14:24:58 14:24:58 360688289 841 2500 2.30 S 1-Aug-01 14:25:12 14:25:18 360688290 842 2500 2.30 B 1-Aug-01 14:25:18 14:25:18 360688291 842 2500 2.30 S 1-Aug-01 14:25:12 14:25:18 360688290 843 2500 2.30 B 1-Aug-01 14:25:18 14:25:18 360688291 843 2500 2.30 S 1-Aug-01 14:25:12 14:25:18 360688290 844 2500 2.30 B 1-Aug-01 14:25:18 14:25:18 360688291 844 2500 2.30 S 1-Aug-01 14:25:12 14:25:18 360688290 845 2500 2.30 B 1-Aug-01 14:25:18 14:25:18 360688291 845 2500 2.30 S 6-Aug-01 12:05:50 12:06:00 240936746 888 2100 2.30 B 6-Aug-01 12:06:00 12:06:00 240936747 888 2100 2.30 S 6-Aug-01 12:05:50 12:06:00 240936746 889 2100 2.30 B 6-Aug-01 12:06:00 12:06:00 240936747 889 2100 2.30 S 6-Aug-01 12:05:50 12:06:00 240936746 890 2100 2.30 B 6-Aug-01 12:06:00 12:06:00 240936747 890 2100 2.30 S 6-Aug-01 12:05:50 12:06:00 240936746 891 2100 2.30 B 6-Aug-01 12:06:00 12:06:00 240936747 891 2100 2.30 S 6-Aug-01 12:05:50 12:06:00 240936746 892 1600 2.30 B 6-Aug-01 12:06:00 12:06:00 240936747 892 1600 2.30 S 6-Aug-01 13:11:06 13:11:07 240936797 893 10000 2.40 B 6-Aug-01 12:12:17 13:11:07 420667868 893 10000 2.40 S 6

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