sebi:WTM/PS/10/IVD/ID-2/May/10
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
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 from the date of the order.
Provisions invoked
- s. 11
Regulations
- Reg. 11
- Reg. 4(1)
Parties
- Mr. Kenneth Pinto
Holding
The noticee, Mr. Kenneth Pinto, was found to have indulged in circular trading and created artificial volumes in the scrip of Karuna along with other group clients/brokers, in violation of Regulation 4(1) and 4(2)(a), (b), (e) and (g) of the PFUTP Regulations, 2003, and was restrained from accessing the securities market for one year.
Full text
Page 2 of 9 shares. The investigations prima facie revealed that the above trading contributed to an unusual spurt in the traded volumes of the scrip. It was found that a group of persons had traded significantly in the scrip, the group aggregately purchased 35,34,831 shares and sold 35,34,681 shares. This accounted for almost 84.5% of the gross volumes on the exchange and 78.45% of the total market volume during the period under investigation.
Page 3 of 9 opportunities have already been given to the noticee to explain his case. In view of this, I am compelled to proceed with the matter ex-parte, on the basis of material available on record, as against the noticee, having complied with the principles of natural justice.
Page 4 of 9 10. Whether the noticee indulged in circular trading and was responsible for creating artificial volumes while trading in the scrip of Karuna? a. The SCN has alleged a pattern of circular trading among a group of 3-4 clients/ brokers who were trading in their own account. It was found that the same number of shares were rotated in a circular manner among the group on daily basis and the trades were so well organized that the same number of shares went back to the original seller at the end of the day and the net position of each client/ broker remained nil. The trade quantities of the noticee along with other group clients/ brokers in the scrip during the period of the investigation (July 01, 2004 to October 29, 2004) are given below (Table A): Table - A
You have read the preview. Create a free account to read the full order, track this party, and analyse it in Ontology.
Free accounts include 10 searches/day with full order access.
Source: SecMarx — sebi:WTM/PS/10/IVD/ID-2/May/10. 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.