sebi:WTM/KMA/IVD/299/09/2010
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Facts / Headnote
Show cause notice dated April 16, 2004 disposed of without any directions; entities given benefit of doubt
Provisions invoked
- s. 19
Regulations
- Reg. 11
- Reg. 4
- Reg. 4(a)
- Reg. 4(b)
Parties
- RRB Securities Limited
- Ivory Securities Limited
- Alaknanda Capital Services Private Limited
- Chinar Financial Services Limited
- Harsai Investment Limited
- Narmada Capital Services Limited
- Gagan Financial Resources Private Limited
Holding
The show cause notice dated April 16, 2004 issued to the seven entities in respect of their dealings in the shares of Alps Industries Limited was disposed of without any directions, holding that contravention of Regulation 4(a), (b), (c) and (d) of the PFUTP Regulations, 1995 was not established and the entities were entitled to benefit of doubt.
Full text
Page 2 of 15 with the stock brokers namely, HB Securities Limited, Fincap Portfolio Limited and RRB Master Securities Delhi Limited and were instrumental in creating artificial volumes in the said scrip. With respect to the trades at National Stock Exchange of India Limited (NSE), it was alleged that the stock brokers namely, HB Securities Limited and Fincap Portfolio Limited had executed various structured trades involving large number of shares, on behalf of the entities. It was also alleged that HB Securities Limited had executed 16 cross deals mostly on behalf of the entities. As regards the trades in the shares of the Company at Delhi Stock Exchange Limited (DSE), it was alleged that the stock brokers namely, HB Securities Limited and RRB Master Securities Delhi Limited had executed matched trades on behalf of the said entities. In view of the above, it was alleged that the buy and sell orders (at the same time or almost the same time) were placed with a view to create false or misleading appearance of trading in the scrip and therefore, the same contravened Regulation 4(a), (b), (c) and (d) of the Securities and Exchange Board of India (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 1995 (hereinafter referred to as the PFUTP Regulations). Hence the show cause notice.
Page 3 of 15 There was no representation on behalf of Ivory Securities Limited. The entities have also filed their respective replies to the show cause notice.
Page 4 of 15 iii. RRB Master Securities Delhi Limited had also traded at DSE for the entities wherein it was appearing as both buying and selling member or the counter party stock broker was HB Securities Limited. Such trades involved 10,83,800 shares which accounted for approximately 59% of the gross volume traded at DSE.
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Source: SecMarx — sebi:WTM/KMA/IVD/299/09/2010. 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.