sebi:WTM/KMA/ERO/IVD/62/04/2009
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Facts / Headnote
Enquiry proceedings disposed of with no further penalty beyond prohibition already undergone
Provisions invoked
- s. 19
Regulations
- Reg. 27
- Reg. 28(2)
Parties
- M/s P. K. Agarwal & Co.
Holding
M/s P. K. Agarwal & Co. was found guilty of violations as described in the order, but no further penalty was imposed beyond the thirty three months of prohibition already undergone under interim orders dated November 30, 2005 and May 31, 2006 until August 11, 2008.
Full text
Page 2 of 7 in order to protect the interest of investors, SEBI, vide an ad-interim ex-parte order dated November 30, 2005 inter alia directed various stock brokers including M/s P. K. Agarwal & Co. (Member, CSE) not to buy, sell or deal in securities, in any manner, either directly or indirectly, till further directions. Subsequently, after affording an opportunity of hearing to the aggrieved persons, SEBI, vide order dated May 31, 2006, confirmed the directions passed vide the ad-interim order dated November 30, 2005, as stated therein.
Page 3 of 7 directions passed vide interim orders dated November 30, 2005 and May 31, 2006, as against the stock brokers. In the meanwhile, the Securities and Exchange Board of India (Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002 was repealed with effect from the notification of the Securities and Exchange Board of India (Intermediaries) Regulations, 2008. Though, the 2002 Regulations was repealed as stated above, anything done and any action taken under the 2002 Regulations (mentioned above) before the publication of the 2008 Regulations (mentioned above) in the Official Gazette are deemed to have been done or taken or commenced under the corresponding provisions of the 2008 Regulations. The Enquiry Officer/Designated Authority (hereinafter referred to as the Enquiry Officer for the purpose of brevity) in his report dated November 19, 2008 found that the Broker by failing to cooperate with the investigating authority, the Broker became liable for action in terms of Regulation 27 (ix) of the Broker Regulations and further recommended for the suspension of the certificate of registration of the Broker for a period of two months.
Page 4 of 7 approximately 93% of the total volume in the shares of the company at CSE during the relevant period. The trades of the Broker alone stands at 2,02,450 shares accounting for 25% of the total volume for the corresponding period. The investigation conducted by SEBI observed that the Broker traded (during December 20, 2004 to March 09, 2005) in the shares of the company when the price was in the range of Rs.7.75/- and Rs.51.10/-. The trade details of the Broker in the shares of the company are given below: Trading Data Member Name No. of shares bought % to Total Buy No. of shares sold % to Total Sell Total no. of shares % to Total Buy & Sell Broker 1,10,900 27% 91,550 23% 2,02,450 25%
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Source: SecMarx — sebi:WTM/KMA/ERO/IVD/62/04/2009. 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.