sebi:WTM/PS/IVD/ID-2/17/OCT/2012
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Facts / Headnote
Directions issued vide the ad-interim ex-parte Order dated December 28, 2011 confirmed against Pinac Stock Brokers Private Limited
Provisions invoked
- s. 19
- s. 12A
Regulations
- Reg. 3
Parties
- Pinac Stock Brokers Private Limited
Holding
The directions issued against Pinac Stock Brokers Private Limited vide the ad-interim ex-parte Order dated December 28, 2011 are confirmed, and no intervention to vacate or modify them is called for.
Full text
Page 2 of 5 the prima facie observations of the said investigation, SEBI vide an ad-interim ex-parte Order dated December 28, 2011 (hereinafter referred to as "the Interim Order") issued directions against TPL and certain others. Pinac, which was prima facie found to have violated the provisions of section 12A of the SEBI Act, 1992, regulations 3, 4(1), 4(2) (a) of the SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 2003 while dealing in the shares of TPL, was prohibited from buying, selling or dealing in any securities, in any manner whatsoever, till further
Page 3 of 5 f. The volume of trades of Pinac (29,888 shares on BSE and 7,83,304 shares on NSE) as compared with the huge volume of trading by Mr. Jivraj Zala, is very miniscule and absolutely insignificant. g. Parklight Securities Limited (“Parklight”) is a registered sub-broker. It had borrowed Rs.3.41 (crore) and Rs.1.5 (crore) from Nihita Financial Services Private Limited ("Nihita") and Mr. Dharamsi Desai, respectively and had also borrowed from other parties during the same time to fund Ms. Lopa and Pinac, to enable them to fulfill their settlement obligations. h. Pinac had incurred a loss of Rs.1,06,74,845/- on BSE and Rs.5,05,21,554.85/- on NSE aggregating to Rs.6,11,96,399.85/-. The losses of Ms. Lopa and Pinac, together, is Rs.9.37 crore against which the allegation is that Parklight received funds and funded Rs.2.30 crore and Rs.70 lakhs to Pinac. The financial transactions between TPL and the alleged parties and that between the alleged parties and Parklight and the financial transactions between Parklight and Ms. Lopa, Pinac and Volga International Limited ("Volga") has no correlation with the loss incurred by Ms. Lopa, Pinac and Volga. i. Pinac had purchased in the highest range price and sold at lowest range price. It cannot be alleged that Pinac had created artificial volume or is a party to the steep fall in the price.
Page 4 of 5 3,00,000 shares at an average price of Rs.62.99/- per share and sold shares at an average price of Rs.27.41/- per share. In view of such trades, Pinac sustained losses to the tune of Rs.6,11,96,399/- (for trades at both NSE and BSE).
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Source: SecMarx — sebi:WTM/PS/IVD/ID-2/17/OCT/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.