sebi:WTM/RKA/ID-3/30/2013
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Facts / Headnote
Violation established; certificate of registration suspended for three days
Provisions invoked
- s. 19
- s. 12(3)
Regulations
- Reg. 7
- Reg. 4
- Reg. 13
- Reg. 4(a)
- Reg. 9
- Reg. 199
- Reg. 28(2)
- Reg. 30
- Reg. 27
- Reg. 28(1)
- Reg. 13(1)
- Reg. 25(3)
- Reg. 23(1)
- Reg. 38(2)
- Reg. 6(2)
Parties
- HB Securities Ltd.
Holding
HB Securities Ltd. violated regulations 4(a)-(d) of PFUTP Regulations, 1995 and clauses A(1), (3), (4) and (5) of the Code of Conduct by indulging in manipulative synchronised cross deals and structured deals in Jagsonpal; its registration as NSE stock broker (INB230607337) was suspended for three days.
Full text
2 creating artificial volume and manipulating the price of the scrip. The first group was active in NSE and BSE and the second group was active in NSE and DSE. The constituents of first group dealt in both periods of investigation and constituents of second group dealt only in the first period of investigation. HB Securities Ltd. (hereinafter referred to as the 'the noticee') was a member of second group that consisted of the following stock brokers and clients- Stock Brokers (a) HB Securities Ltd., stock broker-NSE (b) Fincap Portfolio Ltd., stock broker-NSE ( Fincap) (c) RRB Master Securities Delhi Ltd., stock broker-DSE (RRB Master) (d) UTI Securities Ltd., stock broker-NSE ( UTI) Clients: i. HB Stockholdings Ltd.(HB Stockholding) ii. Har Sai Investments Ltd.( Harsai) iii. Alaknanda Capital Services P. Ltd.( Alaknanda) iv. Gloria Investments Ltd. ( Gloria)
3 orders and sell orders were put at, more or less, same time. The orders were put at a consistently higher price than the previous day's closing price. Thus, the orders were placed with a mala fide intention of creating a false market for the scrip. The cross deals were either between Gloria and HB Stockholdings or between Gloria and Alaknanda. b) Fincap (on the buy side) and the noticee (on the sell side) executed 31 structured deals amounting to 47300 shares in settlements no. 2000044, 2000046 and 2000047. The percentage of volume through these structured trades with respect to market volume in the scrip in these settlements was 23.46%, 44.03% and 6.53%, respectively. The buy and sell orders were put at more or less the same time. Based on the trade log analysis, the DA observed that in settlement no. 2000044 (6 buy orders and 7 sell orders) the buy side client was Harsai and sell side clients were Harsai and Alaknanda. In settlement no. 2000046 (13 buy orders and 16 sell orders), the buy side client was Harsai and the sell side client was Alaknanda. In settlement no. 2000047 (5 buy orders and 5 sell orders), the buy side client was Harsai and sell side client was Alaknanda. c) The noticee [buying stock broker] and UTI [selling stock broker] executed 63 structured deals amounting to 34,570 shares in settlement no. 2000045 and settlement no. 2000047. The buy orders and sell orders were put at more or less the same time. The orders were put at consistently higher price than
4 Memorandum of Association. Based on these factors, the DA has concluded that all these entities are related /associated entities of the noticee. In view of the nexus/ relationship between the entities and the pattern of cross deals/ structured deals found in his Report, the DA has found that the trades undertaken by the noticee in the scrip of Jagsonpal during the investigation period were in collusion with its related/associated entities.
You have read the preview. Create a free account to read the full order, track this party, and analyse it in Ontology.
Free accounts include 10 searches/day with full order access.
Source: SecMarx — sebi:WTM/RKA/ID-3/30/2013. 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.