sebi:WTM/PS/48/IVD/ID-3/OCT/2010
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Facts / Headnote
Noticee restrained from buying, selling or dealing in securities market for a period of six months; charges of aiding and abetting under PFUTP Regulations not established (benefit of doubt given).
Provisions invoked
- s. 19
- s. 12(1)
Regulations
- Reg. 11
- Reg. 4(a)
Parties
- Consent Financial Services Pvt. Ltd.
Holding
The noticee was found to have acted as an unregistered sub-broker in violation of Section 12(1) of the SEBI Act, and was restrained from buying, selling or dealing in the securities market for six months. The charge of aiding and abetting its client in creating artificial volume and price rise was not established, and the noticee received the benefit of doubt on the PFUTP Regulation violations.
Full text
Page 2 of 5 appeared as the major trader in the scrip. It was revealed that the noticee had acted as an unregistered sub-broker while trade in the scrip of VTIL for its clients. Noticee was also found aiding and abetting the clients for creating artificial market in the scrip of VTIL.
Page 3 of 5 7. On this date also, the hearing notice issued to noticee returned undelivered. I note that SEBI has issued a press notification as a mode of substituted service on the noticee, with an advice that in absence of any reply, the matter would be proceeded ex-parte. I note that the stipulated period mentioned in the publication has expired. In view of this, I am compelled to proceed with the matter ex-parte, on the basis of material available on record, having complied with the principles of natural justice.
Page 4 of 5 a. I note that the noticee during the relevant period had traded on behalf of Vivenasri in the scrip of VTIL. A summary of his dealings on behalf of Vivenasri has been brought out below:
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Source: SecMarx — sebi:WTM/PS/48/IVD/ID-3/OCT/2010. 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.