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ADJUDICATION ORDER AGAINST Mr.
MATHEW EASOW UNDER SECTION 15-HA OF SECURITIES AND EXCHANGE BOARD OF INDIA
ACT, 1992 READ WITH RULE 5 OF SEBI (PROCEDURE FOR HOLDING INQUIRY AND IMPOSING
PENALTIES BY ADJUDICATING OFFICER ) RULES, 1995 AO/BR/01/2006 1. BACKGROUND 1.1 SEBI has conducted an examination into
recommendations given by Mr.Mathew Easow on the website www.moneycontrol.com and his dealings in the
shares of the companies recommended by him and issued a cease and desist dated
January 19, 2006 against him in this regard. 1.2 It
was also stated that Mr. Mathew Easow is associated with Mathew Easow Fiscal
Services Ltd., which is a SEBI registered broker with OTCEI having registration
number INB200866030 and Mathew Easow Financial
Services which is a SEBI registered sub-broker (registration number
INS231097713) with Eureka Stock & Share Broking Services Ltd, member of NSE. 1.3 The following
recommendations were given by Mr. Mathew Easow on the website of www.moneycontrol.com.
1.4 The trade data gathered from the exchanges
revealed that Mr. Mathew Easow dealt in the shares of the above mentioned
companies through his associate companies i.e. Mathew Easow Research Securities
Limited (MER) and Mathew Easow Fiscal Services Limited (MEF). The trade details gathered are
given below:
* Dealing in
the shares prior to the date of recommendation 1.5 The above instances indicated that Mr. Mathew
Easow took an opposite trading position to what he recommended to the investors
at large and also started selling the stock after giving an opposite advice to
the market. 1.6 It was therefore
alleged that Mr. Mathew Easow attempted to mislead investors through investment
recommendations and purveying the said information to the public which himself
did not appear to believe to be true and therefore violated the Regulations
3(d) and 4(1) of SEBI
(Prohibition of Fraudulent arid Unfair Trade Practices Relating to Securities
Market) Regulations, 2003 read with Regulations 2(c) and 4(2)(f)
of the said Regulations. 2. SHOW
CAUSE NOTICE, REPLY AND HEARING 2.1 Pursuant to Whole Time Member's Order dated
February 13, 2006, a Show Cause Notice No.ISD/ADJ/BR/65841/2006 dated April 28, 2006 containing
the facts / allegations of
violations, as brought out above, was issued against Mr. Mathew Easow asking
him to show cause why an inquiry against him should not be held in respect of
the alleged contravention of the abovementioned SEBI Regulations and as to why
a penalty under Section 15 HA of Securities and Exchange Board of India Act,
1992 shall not be imposed on him. 2.2
Mr. Mathew Easow had submitted his reply to the show cause
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