sebi:WTM/PS/35/IVD/ID-06/OCT/2011
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Facts / Headnote
Restrained Hindustan Holdings Ltd. (PAN AAACH0524K) and Vintel Securities Ltd. (PAN AABCV0925H) from accessing the securities market and prohibited them from buying, selling or otherwise dealing in securities, directly or indirectly, for a period of 3 months.
Provisions invoked
- s. 11B
Regulations
- Reg. 4(a)
- Reg. 4(1)
- Reg. 15
Parties
- Hindustan Holdings Ltd.
- Vintel Securities Ltd.
Holding
Vintel Securities Ltd. and Hindustan Holdings Ltd. were found to have executed circular trades synchronized in terms of order price, time and quantity, thereby creating artificial volume in the scrip of Sun Infoways Ltd. and affecting its price, in violation of the Code of Conduct under SEBI (Stock Brokers and Sub Brokers) Regulations, 1992 and the PFUTP Regulations, 1995 and 2003. Both noticees were restrained from accessing the securities market for a period of 3 months.
Full text
Page 2 of 10 February 5, 2001 to March 2, 2001 (settlement numbers 46 to 49). These trades led to an increase in the price of the scrip from the beginning of the investigation period to March 2, 2001, and the price remained in the range of Rs.342 to Rs.296 (opening price). Thereafter, the trading of these entities in the scrip reduced drastically and 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. It was thus alleged that certain entities, including the noticees herein, 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 15 read with clause A(1)(2) and D (1)(4)(5) of Code of Conduct specified under Schedule II of SEBI (Stock Brokers and Sub Brokers) Regulations, 1992 and Regulation 4(a), (b), (c) and (d) of SEBI (Prevention of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 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”).
Page 3 of 10 5. In the case of Vintel Securities Private Ltd., the SCN was delivered. Vintel replied to the SCN vide its letter dated October 17, 2008. Subsequently, Vintel was granted several opportunities for personal hearing before me vide letters dated July 8, 2010, August 3, 2010 and September 3, 2010. However, Vintel did not appear for the scheduled hearings.
Page 4 of 10 ISJ Securities Chetan Haridas Mapara (Vintel Securities) 17/9 8100 7100 15200 (37.25%) Joindre Capital Services 1.Heerachand Salecha 2.Kamlesh Jain (Alwin Securities) 14/9 5600 8900 14500 (34.65%)
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Source: SecMarx — sebi:WTM/PS/35/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.