sebi:WTM/GA/43/ISD/12/07
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Facts / Headnote
Major penalty of suspension of certificate of registration for a period of eighteen months imposed
Regulations
- Reg. 4
- Reg. 13(4)
- Reg. 5(1)
Parties
- M/s Shobha Investments (Proprietor Shri Ajay Shah), Member, Pune Stock Exchange Ltd., SEBI Registration no. INB110246011
Holding
M/s Shobha Investments was held to have violated Regulation 4(a)-(c) of the FUTP Regulations, Clauses A(1)-(4) of the Code of Conduct under the Broker Regulations and SEBI circulars on KYC/client registration and margins, and its certificate of registration was suspended for eighteen months.
Full text
Page 2 of 14 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 14 43 2600 2100 1800 2200 2600 2200 3900 4300 10900 10800 11900 91.60 90.76 44 1400 900 2100 2700 3400 2000 1900 2100 8800 7700 10100 87.13 76.24
Page 4 of 14 2.1 On completion of investigations, SEBI appointed an Enquiry officer vide order dated August 9, 2002 under regulation 5(1) of Securities and Exchange Board of India (Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002 (for short the Enquiry Regulations) to enquire into the alleged irregular transactions of the Broker in the shares of HTL. The details of the trades of the Broker in the shares of HTL were also furnished to it by the Enquiry Officer. The Broker made its submissions before the Enquiry Officer and pursuant to the same, vide report dated August 29, 2003, the Enquiry Officer, recommended to impose a major penalty of suspension of the certificate of registration of the Broker for a period of eighteen months in terms of the provisions of the Enquiry Regulations.
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Source: SecMarx — sebi:WTM/GA/43/ISD/12/07. 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.