sebi:WTM/PS/75/IVD/ID-01/MARCH/2012
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Facts / Headnote
Noticees found guilty of violating Regulations 4(b), 4(c) and 4(d) of the PFUTP Regulations; Mr. Milan G. Parikh and Mr. Bhavesh N. Muni restrained from buying, selling or dealing in securities market for one year.
Provisions invoked
- s. 11B
- s. 11
- s. 19
Regulations
- Reg. 4(b)
Parties
- Rijan
- Mr. Milan G. Parikh
- Mr. Bhavesh N. Muni
Holding
The noticees were found guilty of violating Regulations 4(b), 4(c) and 4(d) of the PFUTP Regulations by creating artificial volume in the scrip of Datasoft through self trades and synchronized matched trades. Mr. Milan G. Parikh and Mr. Bhavesh N. Muni were restrained from accessing the securities market for a period of one year.
Full text
Page 2 of 6 ‘Rijan’) traded in the scrip of Datasoft as an unregistered sub-broker and executed manipulative trades continuously over a period of time.
Page 3 of 6 - The SCN is ambiguous and the observations/ allegations therein are not specific. - The trades were executed as per the clients’ requirements and no proprietary trading was done in the scrip. - The trades were done in the normal course of business. It is impossible to detect/ perceive the intentions of the clients. - It was in the process of getting registered as sub-broker during the relevant period, however, later on, it decided not to proceed with registration and stopped trading since 2002. - They were not aware that Vivenasri was already registered as client with Ruchiraj Share and Stock Brokers Pvt. Limited. The director of Rijan may have acted as a witness in his individual capacity in the Member Client agreement between Vivenasri and Ruchiraj Share and Stock Brokers Pvt. Limited. - Rijan’s name has already been removed from the company’s master list w.e.f. from July, 2005 as maintained with the respective statutory authorities. - It has not received copy of the purported statements.
Page 4 of 6 b. I have seen the trading pattern of Rijan in the scrip of Datasoft as also brought out in the SCN and note that it had matched its orders with its own orders on the other side. I have seen the details of self trades entered by Rijan and note that the orders for the same were entered with very little time difference. The details of such trading have also been brought out below for reference: Table A Sett. No. Date Buy order Sell order Trade Member code
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Source: SecMarx — sebi:WTM/PS/75/IVD/ID-01/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.