sebi:WTM/PS/34/IVD/ID-06/OCT/2011
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Facts / Headnote
Restrained Opulent Broking Pvt. Ltd. from accessing the securities market and prohibited from buying, selling or otherwise dealing in securities for a period of 3 months
Provisions invoked
- s. 19
Regulations
- Reg. 4(a)
- Reg. 4(1)
- Reg. 7
Parties
- Opulent Broking Pvt. Ltd.
Holding
SEBI held that Opulent Broking Pvt. Ltd. created artificial volumes in the scrip of Sun Infoways Ltd. through circular/synchronized trades in violation of PFUTP Regulations and Broker Regulations, and restrained it from accessing and dealing in the securities market for 3 months.
Full text
Page 2 of 7 between February 5, 2001 and March 2, 2001, in settlement numbers 46 to 49. This led to an increase in the price of the scrip during the period February 5, 2001 to March 2, 2001, and the price remained in the range of Rs.342 to Rs.296 (opening price). The trading of these entities in the scrip reduced drastically after this period. The volume of trades in the scrip became negligible. The price of the scrip also started declining, and by April 30, 2001, the price fell to Rs. 60.75 before rising marginally to Rs. 73.75 at the end of the investigation period. Therefore, it was alleged that certain entities, including the noticee, had created artificial volumes in the scrip by executing circular trades which were also synchronized in terms of order price, time and quantity, and thus violated Regulation 4(a), (b), (c) and (d) of SEBI (Prevention of Fraudulent and Unfair Trade Practices relating to Securities Market) 1995 (hereinafter referred to as “PFUTP Regulations, 1995”) read with Regulation 4(1), 4(2) (a), (b) (e) (g) and (n) of SEBI (Prevention of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003 (hereinafter referred to as “PFUTP Regulations, 2003”) and Regulation 7 read with clause A(1) to (5) of Code of Conduct specified under Schedule II of SEBI (Stock Brokers and Sub Brokers) Regulations, 1992 (hereinafter referred to as the “Broker Regulations”).
Page 3 of 7 matter, ex-parte, on the basis of material available on record, having complied with the principles of natural justice.
Page 4 of 7 Pvt. Ltd) Nirmal Bang Securities Pvt. Ltd. Mayrose Capfin Pvt. Ltd. 18/12 18900 20200 39100 (68.47%) Mahesh Kothari Shares & Stock Brokers Pvt. Ltd. Great Eastern Mercantile Pvt. Ltd. (Parth Investment Consultants P Ltd) 20/16 19700 19600 39300 (75.43%) Soverign Securities Pvt. Ltd. Adhunik Finance Pvt. Ltd. (Hindustan Holdings Ltd.) 16/14 20700 22500 43200 (82.28%) Veekrant Stocks & Finance Pvt. Ltd. Sati & Swati Investments. –trading on own account Shree Shyam Fabtex Pvt. Ltd (Yash Finance) 13/8 10700 8100 18800 (90.82%) Total circular trading among Group II 93100 92200 185300 Group III IKM Investor Services Ltd. Rajender Rai Ashok Kumar Chaudhary (CompuAction Securities Pvt. Ltd.) 19/7 3800 4300 8100 (31.03%) SSK Investor Services R.S Investments 3/3 4000 3300 7300 (79.34%) Total circular trading among Group III 7800 7600 15400 Total of group I+II+III 272300 271200 543500 Total Market traded Quantity
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Source: SecMarx — sebi:WTM/PS/34/IVD/ID-06/OCT/2011. 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.