sebi:WTM/RKA/EFD/DRA-II/45/2015
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Facts / Headnote
Suspended certificate of registration of M/s Khandwala Securities Limited as stock broker at NSE for a period of one month
Provisions invoked
- s. 19
- s. 12(3)
Regulations
- Reg. 7
- Reg. 3
- Reg. 4
- Reg. 5(1)
- Reg. 13(2)
- Reg. 28(2)
Parties
- Khandwala Securities Limited
Holding
The Whole Time Member suspended the certificate of registration of M/s Khandwala Securities Limited as stock broker at NSE (SEBI Registration No. INB230600030) for a period of one month for violations of PFUTP Regulations and Stock Brokers Code of Conduct committed by Khandwala Finance, whose liabilities transferred on merger.
Full text
Order in respect of Khandwala Securities Ltd. Page 2 of 18 5. Subsequently, Khandwala Finance got merged with Khandwala Securities Limited (Khandwala Securities) and its membership of NSE was transferred to Khandwala Securities.
Order in respect of Khandwala Securities Ltd. Page 3 of 18 such instances in the annexure to the show cause notice issued by him to Khandwala Securities. The Enquiry Officer further noted that these trades influenced the price of the scrip at the NSE.
Order in respect of Khandwala Securities Ltd. Page 4 of 18 vii. Further, on 15.09.2000 at 12:58:16, Khandwala Finance had sold 100506 shares in regular market at 82.50/- on behalf of M/s East West Polyart and after a gap of 3 minutes Khandwala Securities bought 1,00,506 shares at 85.10/- in rolling segment. From the nature of this transaction, it was alleged that Khandwala Finance was indulging in financing transactions through structured deals i.e. the financing trades were given the colour of securities transactions. Khandwala Securities had not denied this allegation. Enquiry Officer has found that Khandwala Finance had indulged in financing transactions through structured deals.
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Source: SecMarx — sebi:WTM/RKA/EFD/DRA-II/45/2015. 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.