sebi:WTM/PS/27/IVD/ID-01/MAY/2012
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Facts / Headnote
Show cause notice disposed without imposing any penalty; noticee given benefit of doubt
Provisions invoked
- s. 11(4)
- s. 19
Regulations
- Reg. 11
- Reg. 4
Parties
- M/s Om Gayatri Securities (Proprietor: Mr. Chirag Pujara)
Holding
The show cause notice dated September 23, 2005 against M/s Om Gayatri Securities was disposed without imposing any penalty, holding the noticee entitled to benefit of doubt for alleged violation of Regulation 4(a), (b), (c) and (d) of the PFUTP Regulations.
Full text
Page 2 of 6 details of the persons who had traded in the scrip along with the data of the volumes contributed and the same revealed that certain entities had indulged in synchronised/ structured deals and executed circular/ reversal of trades which created artificial volume and price rise in the scrip of Somplast.
Page 3 of 6 adjournment; vide his email dated October 13, 2011 as his advocate was not available on the scheduled date. The request of the noticee was granted and accordingly, the hearing was rescheduled to November 18, 2011. On this day, Mr. Chirag Pujara (proprietor of the noticee) and Mr. J.J. Bhatt, Advocate appeared before me and made submissions. Thereafter, the noticee filed the written submissions vide its letter dated November 24, 2011, which have been taken on record.
Page 4 of 6 - There is considerable delay in the proceedings. 6. I note that the noticee has not denied its trades in the scrip of Somplast. The noticee has argued that the trade order log in the scrip has not been provided to it. I have seen that all the documents relied upon have been provided to the noticee. However, I note that no document, which has not been provided to the noticee, is being relied upon in the present proceedings. As regards, the submission of the noticee regarding delay in the proceedings, I note that neither has any time line been fixed for such cases nor can delay be a ground for exoneration. Thus, the issue that now arises for my consideration is: Whether the noticee had entered into synchronized/ circular/ reversal trades, which in turn created artificial volume and price rise in the scrip of Somplast?
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Source: SecMarx — sebi:WTM/PS/27/IVD/ID-01/MAY/2012. 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.