sebi:WTM/RKA/ID-8/61/2013
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Facts / Headnote
Certificate of registration of the Noticee as a stock broker suspended for 15 days; interim order dated December 28, 2011 read with confirmatory order dated May 11, 2012 to cease on expiry of 21 days from the order; Noticee discharged on the charge of creating false market/artificial trading volume.
Provisions invoked
- s. 19
- s. 12A
- s. 12(3)
Regulations
- Reg. 7
- Reg. 2(1)(c)
- Reg. 4(1)
- Reg. 28(2)
- Reg. 3(a)
- Reg. 30
- Reg. 27
Parties
- Baba Bhoothnath Trade and Commerce Pvt. Ltd.
Holding
The Noticee dealt in the shares of TSL in a fraudulent manner by using IPO proceeds of TSL diverted via SIP to meet its settlement obligations, in violation of section 12A(a),(b),(c) of the SEBI Act and the PFUTP Regulations; its certificate of registration was suspended for 15 days, while it was discharged on the separate charge of creating false market/artificial trading volume.
Full text
Page 2 of 10 3. SEBI vide an ad-interim ex-parte order dated December 28, 2011 (hereinafter referred to as "interim order") inter alia prohibited Noticee from buying, selling or dealing in any securities, in any manner whatsoever, in the proprietary account, till further directions. Subsequently, while the investigation in the matter was pending, the interim order was confirmed against the Noticee vide order dated May 11, 2012 (hereinafter referred to as "confirmatory order").
Page 3 of 10 e. It is clear that the Noticee had no investment interest and only created a false market in TSL shares. Its trading resulted in artificial trading volume. This aspect supported by the fact that it received IPO proceeds from TSL clearly establishes that the activities of Noticee were fraudulent in nature.
Page 4 of 10 DA should not be taken against it or a higher penalty as deemed fit should not be imposed upon it. The Noticee, vide its letter dated October 10, 2013 (received on October 22, 2013) filed its reply to the SCN. After seeking adjournment of dates of personal hearing in the matter, the Noticee appeared for personal hearing on December 12, 2013 when Shri Vinay Chauhan, Advocate and Shri Prashant Ingle appeared and made oral submissions on behalf of the Noticee. After the personal hearing, the Noticee also filed its written submissions vide letter dated December 16, 2013. The Noticee has inter alia made the following
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-8/61/2013. 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.