sebi:WTM/PS/29/IVD/ID-06/JAN/2013
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Facts / Headnote
Noticee Allwin Securities Limited prohibited from taking up any new assignment (i.e. not to take up any new clients) for a period of two weeks.
Provisions invoked
- s. 19
- s. 13
Regulations
- Reg. 7
- Reg. 5(1)
- Reg. 4(a)
- Reg. 4(1)
- Reg. 4(b)
- Reg. 15
- Reg. 28(2)
- Reg. 27
- Reg. 28(1)
- Reg. 38(2)
Parties
- Allwin Securities Limited
Holding
The noticee, Allwin Securities Limited, was found to have aided and abetted its clients in the creation of artificial volume in the scrip of SIL through circular/reversal trades, in violation of Regulation 4(b) and (d) of the PFUTP Regulations and Clauses A(2) and D(4) of the Code of Conduct for Sub-Brokers. The noticee was prohibited from taking up any new assignment (i.e. not to take up any new clients) for a period of two weeks.
Full text
Page 2 of 10 scrip had increased from ₹10 in February, 2000 to ₹696 in August, 2000 and appropriate actions were initiated against the persons/ entities found in default.
Page 3 of 10 Table - A Broker Name/ Sub- broker Dealt for client No. of days traded during the period/ No. of days circular trades were executed Buy Sell Gross (buy+ sell) Circular/ reversal qty. Circular / reversal qty. Gross Circular traded qty. (% to total trading of the broker) (Group I) Angel Broking Ltd. Heerachand Salecha 14/12 34,200 31,300 65,500 (86.41%) NC Jain Proprietary trading 6/6 26,500 26,500 53,000 (83.33%) Opulent Broking Ramsudhakaran 7/6 27,100 27,100 54,200 (90.03%) Bharti Thakkar Govind Chhichani 5/5 26,500 26,500 53,000 (100%) Shripal Jain Proprietary trading 5/5 21,400 20,700 42,100 (98.36%) ISJ Securities/ Vintel Securities Chetan Haridas Mapara 17/9 8,100 7,100 15,200 (37.25%) Joindre Capital Services/ Alwin Securities 1.Heerachand Salecha 2.Kamlesh Jain 14/9 5,600 8,900 14,500 (34.65%) Renaissance/ Millennium Securities Abhayraj Shukla 13/8 22,500 23,300 45,800 (75.83%) Total circular trading among Group I 1,71,400 1,71,400 3,42,800
Page 4 of 10 6. Subsequently, a show cause notice (hereinafter referred as 'SCN') dated May 21, 2010 under Regulation 28(1) of the SEBI (Intermediaries) Regulations, 2008, was issued by SEBI to the noticee, asking it to show cause as to why action, as recommended by the Enquiry Officer or as deemed fit by the Board, should not be taken against it. The noticee was advised to reply to the SCN within twenty one (21) days from the date of receipt thereof. The noticee was also informed that in case of failure to reply, it would be presumed that it had no explanation to offer and SEBI may proceed to take action as it deemed fit. A copy of the Enquiry Report was also forwarded to the noticee along with the SCN.
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Source: SecMarx — sebi:WTM/PS/29/IVD/ID-06/JAN/2013. 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.