sebi:WTM/TCN/170/IVD2/JAN/09
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Facts / Headnote
Certificate of Registration of Ravi Vishnu Securities Ltd. suspended for a period of 18 months, effective on expiry of 21 days from the date of this order.
Regulations
- Reg. 7
- Reg. 13(4)
- Reg. 13(2)
- Reg. 4(a)
- Reg. 9
- Reg. 15
- Reg. 199
- Reg. 28(2)
Parties
- Ravi Vishnu Securities Ltd.
Holding
RVSL traded in the scrip of Alfavision Overseas (India) Ltd. with a view to manipulate the scrip and facilitate creation of an artificial market, violating PFUTP Regulations and broker/sub-broker conduct codes. Its Certificate of Registration as member of MP Stock Exchange and sub-broker of MPSE Securities Ltd. is suspended for 18 months.
Full text
2 1.2. The Securities and Exchange Board of India (‘SEBI’) received complaints alleging delay on the part of the company in the dematerialization of the shares of the company as well as rejection by the company of the shares sent by the shareholders fo r transfer on flimsy grounds. The complaints against the company were examined. Based on the records available, it was observed that the company had in several cases, delayed the process of dematerialization of shares beyond the stipulated time of 15 days.
3 be connected to and an associate of AOIL. The report also noted certain instances where the trades of related persons were found to have matched. Based on these reports, it was surmised that there was a possibility that these trades were fictitious and meant to create artificial volumes and increase the price of the scrip of the company.
4 2.1 Pursuant to the findings of investigation, Chairman, SEBI vide order dated January 8, 2003 appointed an Enquiry Officer to enquire into the alleged violations committed by RVSL. The Enquiry Officer conducted enquiry in terms of the then SEBI (Procedure for Holding enquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002 (hereinafter referred to as “Enquiry Regulations”) and found that RVSL traded in the scrip of AOIL with a view to manipulate the scrip and to facilitate AOIL to create artificial market for the scrip and there by violated Regulations 4(a), (b) and (c) of the SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 1995. also by indulging in market manipulation has violated Schedule II clause A1 and A4 of Conduct as prescribed under Regulation 7 of SEBI(Stock Brokers & Sub Brokers) Regulations, 1992, and also violated clause D1 and D4 of the code of Conduct prescribed for Sub-brokers under schedule II read with Regulation 15 of the SEBI (Stock brokers & Sub brokers) Regulations, 1992. On completion of enquiry, the Enquiry Officer submitted a report dated May 25, 2004 to SEBI recommending suspension of certificate of registration of RVSL for a period of 18 months.
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Source: SecMarx — sebi:WTM/TCN/170/IVD2/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.