sebi:WTM/TCN/121/IVD-3/Jan/09
Facts / Headnote
Restrained the noticees from accessing the securities market and from buying, selling or dealing in securities for a period of three months.
Provisions invoked
- s. 11B
- s. 11
- s. 19
- s. 12
- s. 11A
Regulations relied on
- SEBI (PFUTP) Regulations, 2003 — 11
- SEBI (PFUTP) Regulations, 2003 — 13(3)
- SEBI (PFUTP) Regulations, 2003 — 4(a)
- SEBI (PFUTP) Regulations, 2003 — 4(b)
- SEBI (PFUTP) Regulations, 2003 — 4(c)
- SEBI (PFUTP) Regulations, 2003 — 4(d)
- SEBI (PFUTP) Regulations, 2003 — 4(e)
Parties
- M/s. P. L. Choudhary & Co
- M/s. Pawankumar Choudhary - HUF
- M/s. P. P. Choudhary - HUF
- Smt. Sabitaridevi Choudhary
- Smt. Sarita Choudhary
Holding
The noticees were found to have violated Regulation 4(a), (b), (c), (d) and (e) of the SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 1995 by engaging in synchronized trades and financing deals in the scrip of Jagsonpal, and were restrained from accessing the securities market for three months.
Full text
Page 2 of 18 first period) and July, 2001 to October, 2001(hereinafter referred to as second period). 2. From the investigation, it appeared that M/s. P. L. Choudhary & Co, M/s. Pawankumar Choudhary - HUF, M/s. P. P. Choudhary - HUF, Smt. Sabitaridevi Choudhary and Smt. Sarita Choudhary (hereinafter referred to as noticees) had entered into synchronized trade in the said scrip during the said periods in BSE. The noticees had also carried out off-market transactions in the scrip of Jagsonpal during the said period. Further, it was observed that the noticees are related to each other as per the statement dated May 06, 2004 of Mr. Pawankumar Parmeshwarlal, son of Mrs. Sabitaridevi Choudhary and the husband of Mrs. Sarita Choudhary, who is a broker at BSE.
Page 3 of 18 those days when few selected individuals/ entities traded in the scrip. 4. During the second period, price of the scrip at NSE fell from Rs. 319.20 on July 02, 2001 to Rs. 129.50 on October 31, 2001, whereas the volume varied between 1 share on October 08, 2001 to 18,985 shares on July 16, 2001. On the other hand at BSE, price fell from Rs. 345.00 July 02, 2001 to Rs. 149.50 October 29, 2001, while the volume fluctuated between 1 share on September 18, 2001 and October 08, 2001 to 21,815 shares on August 06, 2001. In most of the trading days, the volumes of the said scrip in both exchanges were few hundreds only.
Page 4 of 18 6. In his statement recorded u/s 11C (5) of the SEBI Act, 1992 on May 06, 2004 before the Investigating Officer, Shri Pawankumar Parmeshwarlal, Proprietor of M/s Pawankumar Parmeshwarlal [member – BSE] has stated that the noticees, i.e, Pawankumar Parmeshwarlal group entered into financial deals with the CFL/ Tropical group viz, CFL Securities Ltd, Tropical Securities & Investment P Ltd, Harbinger Trading Co P Ltd, Shriya Capital Services P Ltd, Smt. Aditi Dalal and M/s. S. Ramdas (proprietary account of Tropical) to assist them to avoid default with their financial commitment with the respective stock exchanges.
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Source: SecMarx — sebi:WTM/TCN/121/IVD-3/Jan/09. 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.