sebi:WTM/PS/79/IVD/ID-10/MARCH/2011
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Facts / Headnote
Certificate of registration of G.R. Pandya Share Broking Limited suspended for one month; order effective on expiry of twenty one days from the date of the order.
Provisions invoked
- s. 19
Regulations
- Reg. 7
- Reg. 5(1)
- Reg. 4(a)
- Reg. 28(2)
- Reg. 27
- Reg. 28(1)
- Reg. 38(2)
- Reg. 13(2)
Parties
- G.R. Pandya Share Broking Limited
Holding
The noticee, G.R. Pandya Share Broking Limited, was found guilty of violating Regulation 4(a),(b),(c) and (d) of the PFUTP Regulations and the Code of Conduct for stock brokers under Regulation 7 of the Broker Regulations, and its certificate of registration was suspended for one month.
Full text
Page 2 of 10 (hereinafter referred to as ‘Ramaben’) and Shiv Kumar H. Bissa presently known as Shreehari Hira Stock Broking Private Limited (hereinafter referred to as ‘Shreehari’) and their clients were found trading amongst themselves intra-day for 24 days in circular manner during the period of investigation in the scrip. The total volume generated by way of such circular trades was 3,30,105 shares i.e. about 15% of the total quantity traded during the period under investigation. The investigation revealed that through collusion, the brokers and their clients have indulged in circular and synchronized trading and transacted in the shares of GGAGL in such a manner which led to the creation of artificial volumes in the market leading to significant price movement in the scrip.
Page 3 of 10 5. Subsequently, a show cause notice dated March 16, 2009 (hereinafter referred as SCN’) under Regulation 13(2) of the Enquiry Regulations read with Regulation 28(1) and Regulation 38(2) of the SEBI (Intermediaries) Regulations, 2008, was issued by SEBI to the noticee, asking it to show cause as to why an appropriate penalty including penalty as recommended by the Enquiry Officer should not be imposed. The noticee was advised to reply to the SCN, within twenty one days from the date of receipt thereof. It was also informed that in case of failure, it would be presumed that it had no explanation to offer and that SEBI shall be free to take such action in the manner as it deemed fit. A copy of the Enquiry Report was also forwarded to the noticee along with the SCN.
Page 4 of 10 with other brokers created artificial liquidity/ false market in the scrip of GGAGL? 8. Whether the noticee in collusion with other brokers created artificial liquidity/ false market in the scrip of GGAGL?
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Source: SecMarx — sebi:WTM/PS/79/IVD/ID-10/MARCH/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.