sebi:WTMN/69/IVD/7/04

SEBI · SEBI · 1999-09-30 · T. M. Nagarajan, Whole Time Member

This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.

Facts / Headnote

Certificate of Registration of JRM suspended for a period of five months, effective 21 days from the date of the order.

Provisions invoked

• s. 15
• s. 19
• s. 15I
• s. 15D
• s. 395

Regulations

• Reg. 7
• Reg. 13(4)
• Reg. 3
• Reg. 13
• Reg. 4(a)
• Reg. 13(2)
• Reg. 22(3)

Parties

• M/s. JRM Share & Stock Brokers Private Limited

Holding

JRM Share and Stock Brokers Pvt. Ltd. was found guilty of violating Regulations 4(a), (b) and (d) of the SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 1995 and the Code of Conduct under Regulation 7 of the SEBI (Stock Brokers and Sub-brokers) Regulations, 1992, and its Certificate of Registration was suspended for five months.

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. JRM SHARE & STOCK BROKERS PRIVATE LIMITED. (SEBI REGN. NO. INB010983033) WTMN/69/IVD/7/04

c) The statement recorded by the investigating officer and also by the enquiry officer    d) The report submitted by BSE to SEBI I find that copies of all the documents except BSE’s report had been furnished to JRM. I note that the investigation report of SEBI, which is relevant and based on which action has been initiated against the broker, had been furnished.

It is noted that the administrative office of both the entities is the same Cama Building, 3rd Floor, 24-26, Dalal Street, Mumbai – 23 and that the two brokers were responsible almost for the entire trade volumes in the scrip as may be seen from the table below: Ms Monica Patel was one of the Directors of JRM and she is the wife of Shri Mahesh J Patel, a director of MJP. She was also a director on the board of MTAL. During the period of investigation, Ms. Monica Patel along with her family members, was holding 1,34,350 shares, which works to around 26.9% of the entire share capital of the company. The facts and data presented in the investigation and enquiry report establishes inter connections among the brokers, clients and MTAL, and the transactions in question do reflect the manipulative intent on the part of the broker, JRM.

Source: SecMarx — sebi:WTMN/69/IVD/7/04. 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.