sebi:WTM/GA/41/ISD/11/07
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Facts / Headnote
Major penalty of suspension of certificate of registration for eighteen months imposed
Regulations
- Reg. 4
- Reg. 13(4)
- Reg. 5(1)
- Reg. 17
- Reg. 23
Parties
- M/s Yatin D Shah
Holding
The Broker violated Regulation 4(a) to (c) of the FUTP Regulations, Clauses A(1) to (4) of the Code of Conduct under the Broker Regulations and SEBI circulars dated February 11, 1997, April 11, 1997 and September 14, 1999, and a major penalty of suspension of its certificate of registration for eighteen months was imposed.
Full text
Page 2 of 18 1.2 The maximum rise in the price of the shares of HTL took place between November 16, 1999 and March 31, 2000, when it moved from Rs.275/- to Rs.815/-. In view of the unusual price movement noticed in the shares of HTL, SEBI conducted investigations to look into the possible violation of 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 FUTP Regulations) and Securities and Exchange Board of India (Stock Brokers and Sub-Brokers) Regulations, 1992 (hereinafter referred to as the Broker Regulations).
Page 3 of 18 1.4 The Broker had executed transactions in the shares of HTL on behalf of various clients including M/s Hans Capital, Shri Sandeep Seth, M/s Maniram Consultancy, Shri Sandeep Kedia, M/s Euro Discover Technology Ventures Ltd., M/s Dingo Vincom Pvt Limited, M/s Century Dealers Limited, M/s Parakh Shares and Stock Brokering Services Pvt. Ltd., M/s AGS Financial Services Ltd., M/s Indian National Press Pvt Ltd., M/s Giltedge Finance and Management Services Ltd., M/s Discovery Investment and Unitron Corporation Ltd., Shri Manoj Shah, Shri Neeraj Surti, Smt. Kruti N Surti, Shri Vijay Agarwal, Smt. Subhra Agarwal. Out of the said clients, M/s Euro Discover Technology Ventures Ltd. (EDTV) and M/s Discovery Investment and Unitron Corporation Ltd., were Overseas Corporate Bodies (OCB) based in Mauritius. It was noted that the buy and the sell orders placed by them were at a much higher price than the prevailing market price. The said orders were allegedly placed at the instance of one Shri Veerkar, employee of HTL. It has been alleged that the Broker had not maintained the client registration forms pertaining to its clients, which was in violation of SEBI circulars dated February 11, 1997 and April 11, 1997 and that it had not maintained the counter foils or duplicates of the contract notes issued to any of its clients which was in violation of Regulation 17 of the Broker Regulations, read with SEBI circular dated November 18, 1993. It has been further alleged that the tr
Page 4 of 18 has been alleged that the said trades were in the nature of cross deals and were executed without entering the same on the system, in violation of SEBI circular dated September 14, 1999. The Broker was also alleged to have committed violation of the provisions of clause A (1) to (5) of the Code of Conduct as specified in the Broker regulations.
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Source: SecMarx — sebi:WTM/GA/41/ISD/11/07. 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.