sebi:WTM/TCN/77/IVD1/Dec/08
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Facts / Headnote
Enquiry proceedings disposed of; violations found serious warranting cancellation of registration, but further cancellation does not arise as registration already cancelled vide SEBI order dated November 17, 2008.
Provisions invoked
- s. 19
Regulations
- Reg. 13
- Reg. 4(a)
- Reg. 28(2)
Parties
- M/s. Mayekar Investment Pvt. Ltd.
Holding
The sub broker Mayekar Investment Pvt. Ltd. violated Regulation 4(a),(b),(c) and (d) of PFUTP Regulations, 1995 by executing fictitious and circular trades in the scrip of AITL. The violations were serious and warranted cancellation of the certificate of registration, but since the registration had already been cancelled, further cancellation did not arise and the enquiry proceedings were disposed of accordingly.
Full text
2 and SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003 (hereinafter referred to as “PFUTP Regulations”).
3 instructions at the relevant time on certain days, in some settlements and not continuously and through out the period. iii. The concerned trades were carried out on BOLT screen in the price and order matching mechanism of the BSE during official trading hours. iv. It had placed buy/sell orders in AITL through M/s. R.D.Shah in course of Mayekar Investments Pvt Ltd, sub broking business for and on behalf of its clients during the February 26, 2001 to May 18, 2001. v. The transactions were delivery based and there was no bad delivery in respect of shares sold or delivered in the market. They did not participate in the auction of AITL scrip through M/s R.D.Shah vi. The Enquiry Officer has ignored the fact that their clients were a known party for a long time and they never defaulted in their financial obligations vii. They did not derive any gain or benefit from the rise and fall in the share price of the scrip of AITL.
4 5.1 The issue for consideration in the matter is whether sub broker executed fictitious and circular trades in the scrip of AITL and thereby violated the provisions of SEBI Act, 1992, SEBI (Stock Brokers and Sub Brokers) Regulations, 1992 and FUTP Regulations, 1995 read with FUTP Regulations, 2003.
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Source: SecMarx — sebi:WTM/TCN/77/IVD1/Dec/08. 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.