sebi:WTM/TCN/20/IVD/06/07

SEBI · SEBI · 2004-08-24 · Dr. T.C. Nair, Whole Time Member

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Facts / Headnote

Censure imposed on Allwin Securities Limited

Provisions invoked

• s. 19
• s. 12

Regulations

• Reg. 13(4)
• Reg. 13
• Reg. 5
• Reg. 15
• Reg. 6

Parties

• M/s Allwin Securities Limited

Holding

Allwin Securities Limited was found to have failed to exercise the highest standards of due diligence in dealing in the scrip of Gujarat Fiscon Limited on behalf of its client Shri Salecha, and was censured accordingly.

Full text

Home » Enforcement » Orders » Orders of Chairman/Members Enforcement Enforcement▼ ORDER (Under Regulation 13(4) of SEBI (Procedure For Holding Enquiry By Enquiry Officer and Imposing Penalty) Regulations, 2002 against M/s Allwin Securities Limited, Sub-broker to Joindre Capital Services Limited, Member, BSE. 1.1             SEBI had conducted investigations into the alleged price manipulation in the scrip of Gujarat Fiscon Limited (hereinafter referred to as “GFL the period from July 31, 2000 to December 15, 2000 (hereinafter referred to as the “investigation period”). It was revealed from the investig that during the investigation period, the price of GFL moved from Rs.60 to Rs.104 respectively and touched a peak of Rs.113.50 on Novemb 2000 on BSE. 1.2             Investigations revealed that a cartel of clients and brokers who were known to each other and who also had business relationship traded hea 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. alleged that these members abetted their clients in creating artificial volumes. 1.3             M/s Allwin Securities Limited (hereinafter referred to as “Allwin”) is a sub broker to Joindre Capital Services Ltd., Member of the Bombay Exchange Ltd. (hereinafter referred to as “BSE”) registered with the Securities and Exchange Board of India (hereinafter referred to as “SEBI stock broker under Section 12 of Securities and Exchange Board of

2.2             Allwin replied to the aforesaid show cause notice, vide its letter dated January 20, 2005 and made submissions. An opportunity of personal h was granted to Allwin on February 25, 2005, wherein Shri Pawan Mallawat, Director, Allwin reiterated the submissions made by Allwin v aforementioned letter dated January 20, 2005. 2.3             On completion of enquiry, the Enquiry Officer submitted his report dated June 28, 2005, recommending a minor penalty of censure to Allwin. 3.0             Show Cause Notice and Reply 3.1             On the basis of the recommendation of the Enquiry Officer, a show cause notice dated July 04, 2005 was issued to Allwin under Regulation 13 the Enquiry Regulations, asking it to show cause as to why penalty, as considered appropriate, should not be imposed upon it. A copy of the E Report was also forwarded to Allwin along with the said show cause notice. 3.2             Allwin replied to the aforementioned show cause notice, vide letters dated July 12, 2005 and August 9, 2005 and, inter-alia, made the fol

Limited, Member, BSE, to the effect that Allwin Securities Limited should be careful in future and exercise due care and diligence in the cond its affairs as a capital market intermediary. I also direct Allwin Securities Limited to note that any instances of violation or non-compliance w SEBI Act, Rules and Regulations in future shall be dealt with stringently.

Source: SecMarx — sebi:WTM/TCN/20/IVD/06/07. 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.