sebi:WTM/PS/73/IVD/ID-03/MARCH/2012
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Facts / Headnote
Certificate of registration of Subhkam Securities Limited suspended for a period of two weeks
Provisions invoked
- s. 19
Regulations
- Reg. 7
- Reg. 5(1)
- Reg. 4(b)
- Reg. 28(2)
- Reg. 4(2)(b)
- Reg. 28
- Reg. 38(2)
Parties
- Subhkam Securities Limited
Holding
SEBI found Subhkam Securities Limited guilty of violating Regulation 4(b) and (d) of the PFUTP Regulations and Clauses A(2) and A(3) of the Code of Conduct for stock brokers, and suspended its registration certificate for two weeks.
Full text
Page 2 of 7 Investments Private Limited and Overseas Corporate Bodies (hereinafter referred to as OCBs) namely, Kensington Investments Limited, European Investments Limited, Wakefield Holdings Limited and Brentfield Holdings Limited. During the investigation period, only these Ketan Parekh related entities and the said OCBs were active in the scrip. The trading details of different individuals/ entities in the scrip of Mascon were collected and analysed along with the data of volumes contributed. It was revealed that huge quantities of shares of Mascon were off-loaded by way of off-market transfers from the account of MITL and CSI Technologies Limited. These huge volumes in the shares were allegedly used by the entities related/ connected/ associated to Ketan Parekh to indulge in rampant manipulation of price and volume in Mascon.
Page 3 of 7 to as the ‘Enquiry Officer’) submitted his Report dated July 21, 2009 under SEBI (Intermediaries) Regulations, 2008, recommending a penalty of suspension for a period of two weeks for violating the provisions of Regulation 4(2)(b) and (d) of PFUTP Regulations and Regulation 7 read with Clauses A (1), (2) and (3) of the code of conduct for Stock Brokers, specified in Schedule II of the Stock Brokers Regulations.
Page 4 of 7 - It is not connected with Ketan Parekh or any of its clients connected with Ketan Parekh. Sweet Solutions Limited, Subhkam Monetary Services Private Limited and Milton Securities Limited are its group companies and are not connected with Ketan Parekh group at all. Further, no underlying connection or understanding has been proved with Ketan Parekh. - The trades were at the ruling market prices, resulted in delivery of shares and receipt of payment. - The shares purchased by the client have been received and retained by them for a period of time till sold where applicable. - During the period of investigation, there was no facility of bulk trades and a period for bulk trading was subsequently provided during which the parties can carry out such quantities of trades between two counter parties. As required by law and also the circumstances, the transactions were carried out almost wholly through bulk and single trades between the counterparties. - The cross trades took place on four days. On each of these four days, there was a single trade on each day. Further, during three days out of these, there was a gap of nearly one month between each such trade. - The Gujarat Gas case, reference of which has been made in the SCN is admittedly incomplete and no conclusion can be drawn by SEBI on the same. - It is not connected with the company or its promoters. - It has not been provided with a copy of the investigation report upon which the Enquiry Report has relied upon an
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Source: SecMarx — sebi:WTM/PS/73/IVD/ID-03/MARCH/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.