sebi:WTM/TCN/IVD/ID1/02/04/07

SEBI · SEBI · 2003-07-24 · Dr. T.C. Nair, Whole Time Member

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Facts / Headnote

Suspension of certificate of registration of M/s Juggonpursad Baijnath for six months and prohibition of Shri M.L. Nathany from buying, selling or dealing in securities in any manner for six months, effective on expiry of twenty one days from date of order

Provisions invoked

• s. 11B
• s. 11
• s. 11(4)
• s. 19

Regulations

• Reg. 4
• Reg. 7
• Reg. 13(4)
• Reg. 11
• Reg. 4(d)
• Reg. 4(a)
• Reg. 4(b)
• Reg. 2

Parties

• M/s Juggonpursad Baijnath, member Calcutta Stock Exchange, SEBI Registration No. INB030040915
• Shri M.L. Nathany, proprietor of M/s Juggonpursad Baijnath

Holding

The Whole Time Member imposed suspension of registration of M/s Juggonpursad Baijnath for six months and prohibited its proprietor Shri M.L. Nathany from buying, selling or dealing in securities for six months for manipulation in Ankit Prachi Trading and Investments Ltd.

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 and under Sections 11B And 11(4) of Securities and Exchange Board of India Act, 1992 read with regulation 11 of SEBI (Prohibition of Fraudulent and unfair Trade Practices Relating to Securities Market) Regulations, 2003]

4.2             I observe that the broker was one of the top brokers who had transacted in the said scrip of APTIL during the relevant period of investigatio had dealt in the scrip through three major dealing brokers viz. S.K. Khattry & Co., Lyons Range Share Broking Pvt. Ltd. and Ladha & Co. Th contributed to nearly 96% of the total gross traded volume at the Exchange in the scrip. All the three brokers had given the name of the M/s.Juggonpursad Baijnath as ultimate client. Settlement wise dealings done by the broker in the market during the period December, 1 February, 1998 are tabulated as follows:

4.6 I have also noted the finding of the EO that in the very first settlement, i.e., settlement No.36, the broker had delivered 9,700 shares b distinctive nos.1312301-1322000 through S.K.Khattry, member CSE, which were allotted to Samson Marketing P Ltd situated at 49, Regent Calcutta-700040. These were locked-in shares and thus were neither tradable nor transferable as they belonged to promoter’s quota. It w clear as to how, when and from whom the broker had acquired these shares. 4.7             I am of the view that the broker had not given any clear reply regarding how he got the shares which were allotted to the promoters. Ass that the broker had traded for his clients, the shares delivered by the broker in the very first settlement were standing in the name of S Marketing Private Ltd. (a promoter group company as per the statement of Shri S K Agarwala, director of Ankit) and were under lock-in. Th shows that the broker was aiding and abetting the promoters in the creation of artificial market. Since the broker had failed to give satis explanation, its complicity in the matter is explicit. It is apparent that the broker had artificially raised the price of the scrip by buying and sell said scrip through the said three brokers which is evident from Table-I and II. It is apparent that there is no transfer of beneficial ownership traded scrip and the transactions were done only with an intention to create a false or misleading appearance of trading in the market a transacti

Source: SecMarx — sebi:WTM/TCN/IVD/ID1/02/04/07. 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.