sebi:WTM/KMA/ERO/IVD/283/07/2010
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Facts / Headnote
Certificate of registration suspended for a period of three weeks
Provisions invoked
- s. 19
Regulations
- Reg. 28(2)
- Reg. 4(2)(a)
Parties
- Ahilya Commercial Private Limited
Holding
SEBI suspended the certificate of registration of Ahilya Commercial Private Limited, member of The Calcutta Stock Exchange Limited, for three weeks for manipulation in the shares of Offshore Finvest Limited in violation of the PFUTP Regulations and the Broker Code of Conduct.
Full text
Page 2 of 5 was noticed that the stock brokers viz. Mr. Rajendra Prasad Shah, M/s Prakash Nahata & Co. and Ahilya Commercial Private Limited (hereinafter referred to as the Broker) had traded substantially in the shares of the company and their cumulative trades accounted for 70% of the total volumes traded in the said shares at CSE during the investigation period. It was alleged that the transactions of the Broker were inter alia designed to manipulate the shares of the company and thereby prima facie contravening Regulation 4(2)(a), (e) and (o) of the Securities and Exchange Board of India (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 2003 (hereinafter referred to as the PFUTP Regulations) and Clauses A(1) to A(4) and B(4)(a) of the Code of Conduct specified for stock brokers under Schedule II of the Securities and Exchange Board of India (Stock Brokers and Sub- brokers) Regulations, 1992 (hereinafter referred to as the Broker Regulations). Thereafter, SEBI, vide order dated March 18, 2008 read with a subsequent
Page 3 of 5 with its clients, other than “Broker-Client Relationship” for earning brokerage. Thereafter, the Broker was given an opportunity of hearing on July 2, 2010 when its compliance officer, Mr. Rajiv Choudhary appeared and submitted that the trades of the Broker were done as per the instruction of its clients.
Page 4 of 5 trading in the securities. From the facts and circumstances of the case, it is obvious that the object of the Broker was to manipulate the price and order matching mechanism. The share price of the company had also increased substantially during the trades of the Broker, as stated in the Enquiry Report. The trades of the Broker were substantial as compared to the total traded volume in the shares of the company during the period. Such details were also given in the Enquiry Report. As the Broker had not specifically controverted such transaction details, I do not consider it necessary to reproduce the same in this Order. The Enquiry Officer had given detailed findings in respect of the
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Source: SecMarx — sebi:WTM/KMA/ERO/IVD/283/07/2010. 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.