sebi:WTM/TCN/ID7/46/2007
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Facts / Headnote
Broker found to have aided and abetted and acted in concert with related clients in creating artificial market, false/misleading appearance of trading, non-genuine transactions and transactions intended to inflate or fluctuate price of Roofit Industries Ltd; held liable for action under Regulation 13(1)(b) of SEBI (Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002; certificate of registration proposed to be suspended for four months.
Provisions invoked
- s. 19
Regulations
- Reg. 4
- Reg. 7
- Reg. 4(b)
- Reg. 199
- Reg. 13
- Reg. 200
Parties
- M/s. Pals Overseas Pvt. Ltd.
Holding
M/s. Pals Overseas Pvt. Ltd. was held to have aided and abetted as well as acted in concert with related clients in creating an artificial market, a false or misleading appearance of trading, executing non-genuine transactions, and executing transactions intended to inflate or cause fluctuations in the market price of the scrip of M/s. Roofit Industries Ltd., thereby violating Regulation 4(b), (c) and (d) of the SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Markets) Regulations, 1995 and Regulation 7 read with Clause A(1) and (4) of Schedule II of the SEBI (Stock Brokers and Sub-Brokers) Regulations, 1992.
Full text
Page 2 of 35 dated 19-01-2001 from Shri Michael D’Silva to the effect that the management of the company directly/indirectly controlled the entire shareholding of the company and that it is being used to rig the share price. Thus, NSE was requested to carry out another investigation. In response, NSE submitted another investigation report on December 31, 2001, for the time period 08.11.2000 to 06.02.2001. Further, NSE conducted an investigation for the time period 07.02.2001 to 08.05.2001 and submitted its report on September 11, 2002.
Page 3 of 35 1.6 On an examination of the broker’s trading details, it was observed that Pals had mainly dealt for M/s. Akira Investments Pvt. Ltd. (hereinafter referred to as “Akira”), M/s. Alkan Projects Pvt. Ltd (hereinafter referred to as “Alkan”), M/s. Mayfair Realtors Pvt. Ltd. (hereinafter referred to as “Mayfair”), M/s. M’Belle International Pvt. Ltd (hereinafter referred to as “M’Belle”) and M/s. Onlooker Investments Pvt. Ltd. (hereinafter referred to as “Onlooker”).
Page 4 of 35 In almost all the settlements the member has bought for its clients. b) TRADE LOG ANALYSIS Sett. No. 44 (22/01/2001 to 25/01/2001): On 22/01/2001: Following trades were executed. Table 3 BUYER MEMBER SELLER MEMBER Clg. No. Buy
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Source: SecMarx — sebi:WTM/TCN/ID7/46/2007. 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.