sebi:WTM/TCN/ERO/98/JAN/2009
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Facts / Headnote
Censure imposed on M/s. Mukesh Dokania & Co. for contravention of Broker Regulations and PFUTP Regulations; broker directed to be careful and cautious in future.
Provisions invoked
- s. 19
Regulations
- Reg. 7
- Reg. 6
- Reg. 4
- Reg. 13
- Reg. 5
- Reg. 28
Parties
- M/s. Mukesh Dokania & Co.
Holding
The noticee, M/s. Mukesh Dokania & Co., was found to have contravened Regulation 4(a) and (b) of the PFUTP Regulations and Regulation 7 read with sub-clauses (1), (2) and (4) of Schedule II of the Broker Regulations by executing cross deals in the scrips of Akshay and Ashika, and was censured accordingly.
Full text
Page 2 of 8 referred to as “CSE”). Akshay Fiscal Services Ltd. (Akshay) and Ashika Credit Capital Ltd. (Ashika) were two such companies where widespread speculative trading was reported to SEBI by the CSE. In view of the above, trading in the shares of the said two companies were subjected to investigations by the SEBI for the period July to October, 2001 to find any possible violations of the provisions of the SEBI Act, 1992 and the rules and regulations framed thereunder. The investigations revealed that M/s. Mukesh Dokania & Co. was one such entity which had dealt in the shares of the above said companies allegedly in a manner contravening the provisions of the SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 1995 (‘PFUTP Regulations’) and the SEBI (Stock Brokers and Sub-Brokers) Regulations, 1992 (‘Broker Regulations’). M/s. Mukesh Dokania & Co (‘the noticee’ or ‘broker’) is a member of the CSE and registered with the SEBI with registration no. INB030948114.
Page 3 of 8 the Enquiry Regulations and after appreciating the evidence and material on record, the Enquiry Officer in his report to the Board found that the noticee violated the provisions of Regulation 7 of the Broker Regulations read with Clauses A (1), (2), (3) & (5) and B (4) (a) of the Code of Conduct prescribed for stock brokers mentioned under Schedule II of the said regulations and Clauses (a), (b), (c) and (d) of Regulation 4 of the PFUTP Regulations while dealing in the scrips of Akshay and Ashika. Vide separate Enquiry Reports (both dated 19-12-2006), the Enquiry Officer had recommended that the certificate of registration of the noticee be suspended for a period of 6 months in each of the two matters.
Page 4 of 8 Name of the broker Buy Qty % of member’s buy to total buy (3811706) Sale Qty % of member’s sale to total sale (3811706) Mukesh Dokania & Co. 1223701 32% 1492100 39% Swadha Securities P. Ltd. 915050 24% 1403701 37% S.K. Jhunjhunwala 821000 22% 121000 3% Dinesh Kr. Modi & Co. 395000 10% 420000 11% Total 3354751 88% 3436801 90%
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Source: SecMarx — sebi:WTM/TCN/ERO/98/JAN/2009. 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.