sebi:WTM/PS/85/IVD/ID-10/MARCH/2011
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Facts / Headnote
Certificate of registration suspended for a period of one month
Provisions invoked
- s. 19
Regulations
- Reg. 7
- Reg. 5(1)
- Reg. 4(a)
- Reg. 27
- Reg. 28(1)
- Reg. 28(2)
- Reg. 38(2)
- Reg. 13(2)
Parties
- Adolf Pinto
Holding
The noticee Adolf Pinto (SEBI Registration no. INB 010001810) was held guilty of violating Regulation 4(a), (b), (c) and (d) of the PFUTP Regulations and Clauses A (1), (2), (3), (4) and (5) of the Broker Code of Conduct for circular and synchronized trading in the scrip of GGAGL, and his certificate of registration as stock broker was suspended for a period of one month.
Full text
Page 2 of 10 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 of the shares traded during the period under investigation. The investigation revealed that the brokers and their clients have indulged in circular and synchronized trading through collusion and transacted in the shares of GGAGL thus creating artificial volumes in the market, and leading to the 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 Regulations 28(1) and 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 to reply, 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 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/85/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.