sebi:WTM/KMA/ERO-IVD/152/10/2009
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Facts / Headnote
Enquiry proceeding disposed of with suspension of certificate of registration for six months, set off against prohibition already undergone; no further penalty to be undergone
Provisions invoked
- s. 19
Regulations
- Reg. 28(2)
- Reg. 4(2)(a)
Parties
- M/s. Basant Periwal & Co.
Holding
M/s. Basant Periwal & Co. violated Regulations 4(2)(a), 4(2)(e) and 4(2)(o) of the PFUTP Regulations and Clauses A(1) to A(4) and B(4)(a) of the Broker Code of Conduct in dealing in Nageshwar Investment Limited, and its registration was suspended for six months, set off against prohibition already undergone from November 30, 2005 to August 11, 2008 with no further penalty.
Full text
Page 2 of 7 indirectly, till further directions. Subsequently, the said ex-parte order was confirmed by SEBI, vide order dated May 31, 2006. The investigation had identified certain stock brokers, including M/s Basant Periwal & Co. (hereinafter referred to as the Broker), based on their pattern of trading and the volumes contributed by them in the shares of the company during the investigation period. It was further observed that most of the trade of the said stock brokers were ‘client to client’ and were executed on a single terminal of the same stock broker and the same inter alia led to the manipulation in the shares of the company. It was inter alia alleged that the trade practices of the Broker were prima facie in contravention of the provisions of Regulations 4(2)(a), 4(2)(e) and 4(2)(o) of the PFUTP Regulations and Clauses A(1) to A(4) and Clause B(4)(a) of the Code of Conduct specified in Schedule II of the Broker Regulations.
Page 3 of 7 avail of an opportunity for hearing. Though, the said notice was acknowledged by the Broker, it failed to submit any reply. Thereafter, SEBI granted various opportunities to the Broker, vide letters dated June 23, 2009 and August 24,
Page 4 of 7 d. Out of the above 31,61,955 shares traded by the Broker, trades for 21,18799 shares resulted out of cross/synchronised trades, as mentioned below:
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Source: SecMarx — sebi:WTM/KMA/ERO-IVD/152/10/2009. 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.