sebi:WTM/PS/08/IVD/ID-3/APRIL/2010
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Facts / Headnote
Noticee restrained from buying, selling or dealing in securities market or accessing the securities market, directly or indirectly, for a period of one year
Provisions invoked
- s. 11B
- s. 11(4)
Regulations
- Reg. 11
- Reg. 4
Parties
- Pramod Gadia
Holding
The noticee, Pramod Gadia, was found guilty of violating Regulations 4(2)(a), (b) and (g) of the PFUTP Regulations by indulging in reversal and fictitious trades in the scrip of DBL, and was restrained from accessing the securities market for a period of one year.
Full text
Page 2 of 6 4. On completion of the investigations, SEBI inter-alia issued Show Cause Notice dated October 20, 2008 (hereinafter referred to as ‘SCN’) to the noticee herein under Sections 11(4) and 11B of the SEBI Act, 1992 read with Regulation 11 of SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 2003. The SCN alleged that the noticee had entered transactions which do not appear to be according to sound market practices. The SCN, therefore, alleged that the acts of the noticee were in violation of the Regulations 4 (2) (a), (b) and (g) of the SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 2003 (hereinafter referred to as ‘PFUTP Regulations’). Accordingly, it called upon the noticee to show cause as to why suitable
Page 3 of 6 6. I have carefully considered the SCN and material available on record. After having examined the said material on record, the issue that arises for my consideration is: Whether the noticee has indulged in reversal of trades and fictitious trades, which led to artificial increase in the price and volume in the scrip of DBL?
Page 4 of 6 Table B From above stated pattern of trades, it is inferred that the trades were reversal in nature. I note that such reversal trading between the noticee and M/s Venkatesh Shares and Investment was spread over several trading days. It is pertinent to mention that the noticee during the relevant point of time had traded through both the brokers as stated above and as stated earlier had constituted almost 74% of total net purchases in the scrip. The time difference between such buy/ sell orders was 29 seconds to 2 hours.
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Source: SecMarx — sebi:WTM/PS/08/IVD/ID-3/APRIL/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.