sebi:WTM/GA/166/ERO/3/07
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Facts / Headnote
Major penalty imposed: suspension of certificate of registration for six months
Provisions invoked
- s. 19
Regulations
- Reg. 7
- Reg. 4
- Reg. 13(4)
- Reg. 5(1)
- Reg. 13
- Reg. 4(a)
- Reg. 199
Parties
- Prakash Baid Securities Pvt. Ltd.
Holding
The Broker, Prakash Baid Securities Pvt. Ltd., violated Regulation 4(a) and (b) of the FUTP Regulations and clauses A(1), (2) and (4) of the Code of Conduct in Schedule II of the Broker Regulations by executing cross deals that created artificial volume and price in the shares of Patriot Trading Company Ltd. A major penalty of six months' suspension of its certificate of registration was imposed.
Full text
Page 2 of 15 1.1 The price of the shares of Patriot Trading Company Ltd. (hereinafter referred to as the company) increased from Rs. 2.30/- per share on August 01, 2001 to Rs. 62.16/- on February 15, 2002 at the Calcutta Stock Exchange Association Limited (hereinafter referred to as CSE), the stock exchange where the shares of the company were listed. Further, the price 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) Regulatio
Page 3 of 15 CSE are also registered as stock brokers with SEBI. The aforementioned Prakash Baid Securities Pvt. Ltd is hereinafter referred to as the Broker.
Page 4 of 15 28-Jan-02 10000 40.00 400000.00 10000 40.00 400000.00 30-Jan-02 15000 45.00 675000.00 15000 45.00 675000.00 31-Jan-02 25000 45.00 1125000.00 25000 45.00 1125000.00
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Source: SecMarx — sebi:WTM/GA/166/ERO/3/07. 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.