sebi:WTM/KMA/ERO/IVD/197/12/09
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Facts / Headnote
Certificate of registration suspended for one month, deemed to have been undergone due to prohibition already undergone
Provisions invoked
- s. 19
Regulations
- Reg. 28(2)
- Reg. 4(2)(o)
Parties
- S. Jhunjhunwala & Co.
Holding
The certificate of registration of S. Jhunjhunwala & Co. was suspended for one month for violating PFUTP Regulations and the Broker Code of Conduct, but the broker was deemed to have undergone the penalty in view of prohibition already undergone.
Full text
Page 2 of 4 were client to client which have been executed on a single terminal of the same stock broker. It was observed that the matched trades executed by the said stock brokers consequently, led to the price rise and manipulation in the shares of the company. Thereafter, SEBI, vide order dated September 20, 2006 read with a subsequent
Page 3 of 4 2. I note that the shares of the company witnessed a sharp increase during the investigation period. The price rose from Rs.12.10/- on March 18, 2005 to Rs.96.50/- on September 16, 2005. It was observed that the trades of stock brokers, namely, M/s Ram Mohan Sarda and the Broker accounted for around 53.86% of the total trading in the shares of the company at CSE during the period of investigation. The Broker was found to have transacted in 4,76,005 shares of the company contributing to around 12.17% of the total trading volume in the said shares at CSE, as given below:
Page 4 of 4 Broker while dealing in the shares of the company during the investigation period. In the facts and circumstances, it is established that the stock broker violated Regulation 4(2)(o) of the PFUTP Regulations and Clauses A(2) and B(4)(a) of the Code of Conduct specified under Schedule II of the Broker Regulations, as observed by the Enquiry Officer. Accordingly, the present proceeding is disposed of in terms of the provisions of Securities and Exchange Board of India (Intermediaries) Regulations, 2008, as ordered herein below.
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Source: SecMarx — sebi:WTM/KMA/ERO/IVD/197/12/09. 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.