sebi:WTM/GA/32/ISD/11/05
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Facts / Headnote
Minor penalty of suspension of certificate of registration for a period of fifteen days imposed, to come into effect on expiry of 21 days from the date of the order.
Regulations
- Reg. 7
- Reg. 199
- Reg. 13(4)
- Reg. 4
- Reg. 5(1)
- Reg. 13(2)
- Reg. 200
- Reg. 6
- Reg. 17(1)
- Reg. 13(1)
- Reg. 13(1)(a)
Parties
- M/s Jagannath Vinod Kumar (INB 110241310), member Pune Stock Exchange
Holding
M/s Jagannath Vinod Kumar violated Clause A(2), A(3-4), B(1) of Schedule II under Regulation 7 and Regulation 4(a), (b), (c) of the FUTP Regulations by contributing to abnormal volumes and false market in Home Trade Ltd. and failing due diligence and KYC norms, and a minor penalty of suspension of certificate of registration for fifteen days was imposed.
Full text
Page 2 of 14 2 The maximum rise in the price of the scrip took place between November 16, 1999 and March 31, 2000 when the price moved from Rs.275 to Rs.815/-. Thereafter the price fell to Rs. 640/- in September 25, 2000. Subsequently, the face value of the shares changed to Rs. 2/- and the price went up from a level of Rs. 123/- on September 26, 2000 to Rs.171/- during February 2001. The scrip continued to trade at around Rs. 150/- till September 14, 2001 and thereafter in the range of Rs. 170/- till January 2002.
Page 3 of 14 3 Name of the Broker Buy qty % to the total vol. at exchange Sell qty % to the total vol. at exchange Shoba Investments 75100 17.59 75100 17.59 Yatin Shah & Co. 60300 14.13 56100 13.14 Kabu Invest.Services 47500 11.13 47500 11.13 Trimty Invest. 41100 9.63 41100 9.63 Shrine Investments 37400 8.76 39700 9.30 Kanchan Investments 34500 8.08 32400 7.59 Sharad B Shah 28600 6.70 24900 5.83 Clever Investments 21300 4.99 21300 4.99 Chirag Investments 19600 4.59 16400 3.84 CR Kulkarni 16700 3.91 16300 3.82 Ramesh G Shah 12300 2.88 13000 3.05 PL Pushpalakshmi C&C 13200 3.09 13100 3.07 Jagannath Vinod Kumar 5300 1.24 6300 1.48 Total 412900 96.72 401400 94.45
Page 4 of 14 4 thereby contravening the provisions of SEBI Act and regulations including SEBI (Stock Brokers and Sub-brokers) Regulations, 1992. Investigation brought out the role played by these brokers including the said broker in price rise during the period of investigation through a phalanx of clients introduced by the itinerant and trusted employees of HTL. It was also alleged that the broker failed to observe the ‘Know Your Client’ norms.
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Source: SecMarx — sebi:WTM/GA/32/ISD/11/05. 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.