sebi:WTM/TCN/127/IVD3/Jan/09
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Facts / Headnote
Warning issued to Shri Vipul Bhagwandas Shah under Section 19 read with Regulation 28(2) of the SEBI (Intermediaries) Regulations, 2008
Provisions invoked
- s. 19
Regulations
- Reg. 7
- Reg. 4
- Reg. 13(2)
- Reg. 13
- Reg. 28(2)
Parties
- Shri Vipul Bhagwandas Shah
Holding
SEBI warned Shri Vipul Bhagwandas Shah, a partner of the erstwhile broking firm Bhagwandas Bhogilal & Co. (BBC), for aiding and abetting his client Jatin R. Shah in creating artificial volumes and manipulating the price of the scrip of GFL at BSE, in violation of PFUTP Regulations and the Broker Regulations Code of Conduct. The Enquiry Officer's recommended three-month debarment was not imposed; instead a warning was held sufficient.
Full text
2 2. It was found that a cartel of clients and brokers who were known to each other and who also had business relationship traded heavily in the scrip thereby creating artificial volumes in the scrip at BSE. It was found that the top eight members traded 82% of the traded volume. It was alleged that these members abetted their clients in creating artificial volumes.
3 partnership firm BBC vide enquiry report dated November 8, 2005, however the proceedings were initiated against the two partners viz., Shri Vijay Bhagwandas Shah and Shri Vipul Bhagwandas Shah vide further order dated May 16, 2006. During the enquiry proceedings, it was found that one of the partners namely, Shri Vijay Bhagwandas Shah had also expired on June 10, 2006 and therefore the proceedings against him were dropped. In view of the above, the enquiry was proceeded only against Shri Vipul Bhagwandas Shah under the SEBI (Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002 (hereinafter referred to as the “Enquiry Regulations”).
4 2008 was issued to Shri Vipul Bhagwandas Shah requiring him to show cause as to why appropriate action including the action as recommended by the Enquiry Officer should not be imposed upon him.
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Source: SecMarx — sebi:WTM/TCN/127/IVD3/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.