SECURITIES AND EXCHANGE BOARD OF INDIA
ORDER
UNDER REGULATION 13(4) OF THE SECURITIES AND EXCHANGE BOARD OF INDIA (PROCEDURE FOR HOLDING ENQUIRY BY ENQUIRY OFFICER AND IMPOSING PENALTY) REGULATIONS, 2002 IN THE MATTER OF M/S. AMRATLAL GOPALJI THACKER, BROKER, CALCUTTA STOCK EXCHANGE ASSOCIATION LTD. (SEBI REGN. NO.INB 030785313).
WTM/GA/86/ISD/08/06
1.0 BACKGROUND
1.1 Amratlal Gopalji Thacker (hereinafter referred to as the Broker) is a member of Calcutta Stock Exchange Association Ltd. (hereinafter referred to as CSE) and registered with Securities Exchange Board of India (hereinafter referred to as SEBI) under section 12 of Securities and Exchange Board of India Act, 1992 ( hereinafter referred to as the Act) having registration No.INB030785313.
1.2 SEBI conducted an Investigation into the buying, selling and dealings in the scrip of DSQ Industries Ltd. (hereinafter referred to as DSQ), which is stated to be a group concern of Shri Dinesh Dalmia, main promoter of DSQ Software. The shares of DSQ are listed on CSE. The investigation conducted by SEBI in the scrip of DSQ revealed that during the period January 01, 2001 to January 08, 2001 (hereinafter referred to as the relevant period), substantial trades were executed between the Broker and another member of CSE, namely, Shri Harish Chandra Biyani . The price of the scrip of DSQ reached from Rs.360/- to Rs. 452/- within 4 days of the said trading and that the aforesaid brokers placed the orders almost at the same time.
1.3 The total volume at CSE in the scrip of DSQ during the above period vis-à-vis the volume of the Broker with the price range is given below :
|
Date
|
V0lume at CSE
|
Volume of Broker
|
Open
|
High
|
Low
|
Close
|
|
01/01/2001
|
2000
|
800
|
342.00
|
363.80
|
342.00
|
363.80
|
|
02/01/2001
|
2000
|
2000
|
366.00
|
390.80
|
366.00
|
390.60
|
|
04/01/2001
|
3000
|
3000
|
395.00
|
419.80
|
392.50
|
419.80
|
|
08/01/2001
|
222000
|
1900
|
424.40
|
451.20
|
424.40
|
451.20
|
1.4 The trades executed by the Broker with Shri Harish Chandra Biyani in the scrip of DSQ at CSE on January 01, 2001, as per the trade log is given below:
|
Trade time
|
Trade id
|
order id
|
Rate
|
Order time
|
Time diff between B/S order
|
b/s
|
mem
|
Mem
|
qty
|
ord. rate
|
|
12:09:53
|
886
|
61014459
|
360
|
12:09:51
|
****
|
SELL
|
35
|
805
|
100
|
360
|
|
12:09:53
|
886
|
150958941
|
360
|
12:09:52
|
0:00:01
|
BUY
|
805
|
35
|
100
|
360
|
|
12:10:09
|
887
|
61014461
|
360.8
|
12:10:08
|
****
|
BUY
|
35
|
805
|
100
|
360.8
|
|
12:10:09
|
887
|
150958945
|
360.8
|
12.10.03
|
0.00.05
|
SELL
|
805
|
35
|
100
|
360.8
|
|
12:10:42
|
888
|
61014464
|
361.2
|
12:10:41
|
****
|
BUY
|
35
|
805
|
100
|
361.2
|
|
12:10:42
|
888
|
150958959
|
361.2
|
12:10:34
|
0:00:07
|
SELL
|
805
|
35
|
100
|
361.2
|
|
12:10:59
|
889
|
61014466
|
361.9
|
12:10:58
|
****
|
SELL
|
35
|
805
|
100
|
361.9
|
|
12:10:59
|
889
|
150958966
|
361.9
|
12:10:52
|
0:00:06
|
BUY
|
805
|
35
|
100
|
361.9
|
|
12:11:29
|
890
|
61014469
|
361.6
|
12:11:17
|
****
|
SELL
|
35
|
805
|
100
|
361.6
|
|
12:11:29
|
890
|
150958978
|
361.6
|
12:11:29
|
0:00:12
|
BUY
|
805
|
35
|
100
|
361.6
|
|
12:11:51
|
891
|
61014474
|
362.4
|
12:11:50
|
****
|
BUY
|
35
|
805
|
100
|
362.4
|
|
12:11:51
|
891
|
150958980
|
362.4
|
12:11:43
|
0:00:07
|
SELL
|
805
|
35
|
100
|
362.4
|
|
12:12:12
|
892
|
61014479
|
362.1
|
12:12:12
|
****
|
SELL
|
35
|
805
|
100
|
362.1
|
|
12:12:12
|
892
|
150958987
|
362.1
|
12:12:10
|
0:00:02
|
BUY
|
805
|
35
|
100
|
362.1
|
|
12:12:30
|
893
|
61014483
|
363.3
|
12:12:29
|
****
|
BUY
|
35
|
805
|
100
|
363.3
|
|
12:12:30
|
893
|
150958990
|
363.3
|
12:12:25
|
0:00:04
|
SELL
|
805
|
35
|
100
|
363.3
|
1.5 The trades executed by the Broker with Shri Harish Chandra Biyani in the scrip of DSQ at CSE on January 02, 2001 , as per the trade log is given below
|
Trade time
|
Trade id
|
order id
|
Rate
|
Order time
|
Time diff between B/S order
|
b/s
|
mem
|
Mem
|
qty
|
ord. rate
|
|
14:52:28
|
896
|
210595213
|
366
|
14:52:26
|
****
|
SELL
|
35
|
805
|
100
|
366
|
|
14:52:28
|
896
|
180721378
|
366
|
14:52:17
|
0:00:09
|
BUY
|
805
|
35
|
100
|
366
|
|
14:52:49
|
897
|
210595221
|
368.7
|
14:52:48
|
****
|
BUY
|
35
|
805
|
100
|
368.7
|
|
14:52:49
|
897
|
90957919
|
368.7
|
14:52:39
|
0:00:09
|
SELL
|
805
|
35
|
100
|
368.7
|
|
14:53:17
|
898
|
210595226
|
370.8
|
14:53:15
|
****
|
BUY
|
35
|
805
|
100
|
370.8
|
|
14:53:17
|
898
|
180721395
|
370.8
|
14:53:06
|
0:00:09
|
SELL
|
805
|
35
|
100
|
370.8
|
|
14:53:39
|
899
|
210595231
|
373
|
14:53:38
|
****
|
BUY
|
35
|
805
|
100
|
373
|
|
14:53:39
|
899
|
180721404
|
373
|
14:53:30
|
0:00:08
|
SELL
|
805
|
35
|
100
|
373
|
|
14:54:08
|
900
|
210595234
|
375.6
|
14:54:07
|
****
|
SELL
|
35
|
805
|
100
|
375.6
|
|
14:54:08
|
900
|
180721412
|
375.6
|
14:54:00
|
0:00:07
|
BUY
|
805
|
35
|
100
|
375.6
|
|
14:54:35
|
901
|
210595243
|
377.8
|
14:54:34
|
****
|
SELL
|
35
|
805
|
100
|
377.8
|
|
14:54:35
|
901
|
180721418
|
377.8
|
14:54:16
|
0:00:18
|
BUY
|
805
|
35
|
100
|
377.8
|
|
14:55:02
|
902
|
210595253
|
379.6
|
14:55:02
|
****
|
SELL
|
35
|
805
|
100
|
379.6
|
|
14:55:02
|
902
|
180721426
|
379.6
|
14:54:51
|
0:00:11
|
BUY
|
805
|
35
|
100
|
379.6
|
|
14:55:36
|
903
|
210595258
|
381.1
|
14:55:33
|
****
|
SELL
|
35
|
805
|
100
|
381.1
|
|
14:55:36
|
903
|
180721434
|
381.1
|
14:55:24
|
0:00:09
|
BUY
|
805
|
35
|
100
|
381.1
|
|
14:55:54
|
904
|
210595262
|
382.9
|
14:55:53
|
****
|
BUY
|
35
|
805
|
100
|
382.9
|
|
14:55:54
|
904
|
180721438
|
382.9
|
14:55:43
|
0:00:10
|
SELL
|
805
|
35
|
100
|
382.9
|
|
14:56:07
|
905
|
210595265
|
384.6
|
14:56:06
|
****
|
BUY
|
35
|
805
|
100
|
384.6
|
|
14:56:07
|
905
|
180721440
|
384.6
|
14:55:57
|
0:00:09
|
SELL
|
805
|
35
|
100
|
384.6
|
|
14:56:20
|
906
|
210595267
|
386.7
|
14:56:18
|
****
|
BUY
|
35
|
805
|
100
|
386.7
|
|
14:56:20
|
906
|
180721445
|
386.7
|
14:56:11
|
0:00:07
|
SELL
|
805
|
35
|
100
|
386.7
|
|
14:56:29
|
907
|
210595271
|
388.5
|
14:56:28
|
****
|
BUY
|
35
|
805
|
100
|
388.5
|
|
14:56:29
|
907
|
180721449
|
388.5
|
14:56:22
|
0:00:06
|
SELL
|
805
|
35
|
100
|
388.5
|
|
14:56:44
|
908
|
210595275
|
389.8
|
14:56:42
|
****
|
BUY
|
35
|
805
|
100
|
389.8
|
|
14:56:44
|
908
|
180721453
|
389.8
|
14:56:33
|
0:00:09
|
SELL
|
805
|
35
|
100
|
389.8
|
|
14:57:27
|
909
|
210595289
|
387
|
14:57:26
|
****
|
SELL
|
35
|
805
|
200
|
387
|
|
14:57:27
|
909
|
180721464
|
387
|
14:57:19
|
0:00:07
|
BUY
|
805
|
35
|
200
|
387
|
|
14:57:50
|
910
|
210595295
|
390.2
|
14:57:50
|
****
|
SELL
|
35
|
805
|
100
|
390.2
|
|
14:57:50
|
910
|
90957990
|
390.2
|
14:57:42
|
0:00:08
|
BUY
|
805
|
35
|
100
|
390.2
|
|
14:58:20
|
911
|
210595304
|
389.1
|
14:58:18
|
****
|
SELL
|
35
|
805
|
100
|
389.1
|
|
14:58:20
|
911
|
180721480
|
389.1
|
14:58:07
|
0:00:11
|
BUY
|
805
|
35
|
100
|
389.1
|
|
14:58:34
|
912
|
210595309
|
390.1
|
14:58:32
|
****
|
SELL
|
35
|
805
|
100
|
390.1
|
|
14:58:34
|
912
|
180721486
|
390.1
|
14:58:25
|
0:00:07
|
BUY
|
805
|
35
|
100
|
390.1
|
|
14:58:51
|
913
|
210595315
|
390.8
|
14:58:49
|
****
|
BUY
|
35
|
805
|
100
|
390.8
|
|
14:58:51
|
913
|
180721490
|
390.8
|
14:58:40
|
0:00:09
|
SELL
|
805
|
35
|
100
|
390.8
|
|
14:59:18
|
914
|
31147583
|
390.6
|
14:59:17
|
****
|
BUY
|
35
|
805
|
100
|
390.6
|
|
14:59:18
|
914
|
90958020
|
390.6
|
14:59:09
|
0:00:08
|
SELL
|
805
|
35
|
100
|
390.6
|
1.6 The trades executed by the Broker with Shri Harish Chandra Biyani in the scrip of DSQ at CSE on January 04, 2001 , as per the trade log is given below:
|
Trade time
|
Trade id
|
order id
|
Rate
|
Order time
|
Time diff between B/S order
|
b/s
|
mem
|
Mem
|
qty
|
ord. rate
|
|
13:10:23
|
915
|
61026497
|
392.5
|
13:10:22
|
****
|
Sell
|
35
|
805
|
100
|
395
|
|
13:10:23
|
915
|
180728792
|
395
|
13:10:20
|
0:00:02
|
Buy
|
805
|
35
|
100
|
395
|
|
13:10:31
|
916
|
61026500
|
392.5
|
13:10:30
|
****
|
Sell
|
35
|
805
|
100
|
392.5
|
|
13:10:31
|
916
|
180728790
|
392.5
|
13:10:12
|
0:00:18
|
Buy
|
805
|
35
|
100
|
392.5
|
|
13:10:45
|
917
|
61026501
|
397.6
|
13:10:44
|
****
|
Sell
|
35
|
805
|
100
|
397.6
|
|
13:10:45
|
917
|
180728795
|
397.6
|
13:10:35
|
0:00:09
|
Buy
|
805
|
35
|
100
|
397.6
|
|
13:10:57
|
918
|
61026503
|
399.9
|
13:10:56
|
****
|
Sell
|
35
|
805
|
100
|
399.9
|
|
13:10:57
|
918
|
180728796
|
399.9
|
13:10:49
|
0:00:07
|
Buy
|
805
|
35
|
100
|
399.9
|
|
13:11:18
|
919
|
61026505
|
402.4
|
13:11:17
|
****
|
Buy
|
35
|
805
|
100
|
402.4
|
|
13:11:18
|
919
|
180728798
|
402.4
|
13:11:08
|
0:00:09
|
Sell
|
805
|
35
|
100
|
402.4
|
|
13:11:38
|
920
|
61026510
|
405.3
|
13:11:36
|
****
|
Buy
|
35
|
805
|
200
|
405.3
|
|
13:11:38
|
920
|
180728802
|
405.3
|
13:11:23
|
0:00:13
|
Sell
|
805
|
35
|
200
|
405.3
|
|
13:15:49
|
921
|
61026540
|
406.4
|
13:15:47
|
****
|
Buy
|
35
|
805
|
100
|
406.4
|
|
13:15:49
|
921
|
180728835
|
406.4
|
13:15:30
|
0:00:17
|
Sell
|
805
|
35
|
100
|
406.4
|
|
13:16:09
|
922
|
61026543
|
407.5
|
13:16:08
|
****
|
Buy
|
35
|
805
|
100
|
407.5
|
|
13:16:09
|
922
|
180728839
|
407.5
|
13:15:59
|
0:00:09
|
Sell
|
805
|
35
|
100
|
407.5
|
|
13:16:21
|
923
|
61026544
|
408.5
|
13:16:20
|
****
|
Buy
|
35
|
805
|
100
|
408.5
|
|
13:16:21
|
923
|
180728840
|
408.5
|
13:16:11
|
0:00:09
|
Sell
|
805
|
35
|
100
|
408.5
|
|
13:16:33
|
924
|
61026545
|
409.9
|
13:16:32
|
****
|
Buy
|
35
|
805
|
100
|
409.9
|
|
13:16:33
|
924
|
180728841
|
409.9
|
13:16:23
|
0:00:09
|
Sell
|
805
|
35
|
100
|
409.9
|
|
13:16:43
|
925
|
61026547
|
410.8
|
13:16:42
|
****
|
Buy
|
35
|
805
|
100
|
410.8
|
|
13:16:43
|
925
|
180728843
|
410.8
|
13:16:35
|
0:00:07
|
Sell
|
805
|
35
|
100
|
410.8
|
|
13:17:00
|
926
|
61026549
|
411.5
|
13:16:59
|
****
|
Sell
|
35
|
805
|
100
|
411.5
|
|
13:17:00
|
926
|
180728845
|
411.5
|
13:16:51
|
0:00:08
|
Buy
|
805
|
35
|
100
|
411.5
|
|
13:17:13
|
927
|
61026551
|
412.4
|
13:17:12
|
****
|
Sell
|
35
|
805
|
100
|
412.4
|
|
13:17:13
|
927
|
180728848
|
412.4
|
13:17:02
|
0:00:10
|
Buy
|
805
|
35
|
100
|
412.4
|
|
13:17:38
|
928
|
61026556
|
413.8
|
13:17:37
|
****
|
Sell
|
35
|
805
|
100
|
413.8
|
|
13:17:38
|
928
|
180728854
|
413.8
|
13:17:27
|
0:00:10
|
Buy
|
805
|
35
|
100
|
413.8
|
|
13:18:03
|
929
|
61026558
|
416.1
|
13:18:01
|
****
|
Sell
|
35
|
805
|
100
|
416.1
|
|
13:18:03
|
929
|
180728857
|
416.1
|
13:17:51
|
0:00:10
|
Buy
|
805
|
35
|
100
|
416.1
|
|
13:18:33
|
930
|
61026563
|
416.4
|
13:18:32
|
****
|
Buy
|
35
|
805
|
500
|
416.4
|
|
13:18:33
|
930
|
180728866
|
416.4
|
13:18:22
|
0:00:10
|
Sell
|
805
|
35
|
500
|
416.4
|
|
13:18:53
|
931
|
61026572
|
417.5
|
13:18:52
|
****
|
Sell
|
35
|
805
|
300
|
417.5
|
|
13:18:53
|
931
|
180728870
|
417.5
|
13:18:43
|
0:00:09
|
Buy
|
805
|
35
|
300
|
417.5
|
|
13:19:08
|
932
|
61026574
|
418.5
|
13:19:06
|
****
|
Sell
|
35
|
805
|
100
|
418.5
|
|
13:19:08
|
932
|
180728874
|
418.5
|
13:18:56
|
0:00:10
|
Buy
|
805
|
35
|
100
|
418.5
|
|
13:19:29
|
933
|
61026580
|
419.6
|
13:19:28
|
****
|
Sell
|
35
|
805
|
100
|
419.6
|
|
13:19:29
|
933
|
180728880
|
419.6
|
13:19:20
|
0:00:08
|
Buy
|
805
|
35
|
100
|
419.6
|
|
13:20:01
|
934
|
61026583
|
417.5
|
13:19:59
|
****
|
Buy
|
35
|
805
|
200
|
417.5
|
|
13:20:01
|
934
|
180728885
|
417.5
|
13:19:53
|
0:00:06
|
Sell
|
805
|
35
|
200
|
417.5
|
|
13:20:21
|
935
|
61026587
|
419.5
|
13:20:20
|
****
|
Sell
|
35
|
805
|
100
|
419.5
|
|
13:20:21
|
935
|
180728892
|
419.5
|
13:20:11
|
0:00:09
|
Buy
|
805
|
35
|
100
|
419.5
|
|
13:20:32
|
936
|
61026588
|
419.8
|
13:20:31
|
****
|
Sell
|
35
|
805
|
100
|
419.8
|
|
13:20:32
|
936
|
180728900
|
419.8
|
13:20:23
|
0:00:08
|
Buy
|
805
|
35
|
100
|
419.8
|
1.7 The trades executed by the Broker with Shri Harish Chandra Biyani in the scrip of DSQ at CSE on January 08, 2001 , as per the trade log is given below:
|
Trade time
|
Trade id
|
order id
|
Rate
|
Order time
|
Time diff between B/S order
|
b/s
|
mem
|
Mem
|
qty
|
ord. rate
|
|
12:43:48
|
937
|
61030594
|
424.4
|
12:43:47
|
****
|
SELL
|
35
|
805
|
100
|
424.4
|
|
12:43:48
|
937
|
180732375
|
424.4
|
12:43:37
|
0:00:10
|
BUY
|
805
|
35
|
100
|
424.4
|
|
12:44:03
|
938
|
61030596
|
427.8
|
12:44:02
|
****
|
BUY
|
35
|
805
|
100
|
427.8
|
|
12:44:03
|
938
|
180732379
|
427.8
|
12:43:54
|
0:00:08
|
SELL
|
805
|
35
|
100
|
427.8
|
|
12:44:25
|
939
|
61030598
|
430.4
|
12:44:24
|
****
|
SELL
|
35
|
805
|
100
|
430.4
|
|
12:44:25
|
939
|
180732380
|
430.4
|
12:44:12
|
0:00:12
|
BUY
|
805
|
35
|
100
|
430.4
|
|
12:44:43
|
940
|
61030599
|
432.8
|
12:44:42
|
****
|
BUY
|
35
|
805
|
100
|
432.8
|
|
12:44:43
|
940
|
180732383
|
432.8
|
12:44:33
|
0:00:09
|
SELL
|
805
|
35
|
100
|
432.8
|
|
12:44:59
|
941
|
61030601
|
435.6
|
12:44:58
|
****
|
SELL
|
35
|
805
|
100
|
435.6
|
|
12:44:59
|
941
|
180732384
|
435.6
|
12:44:49
|
0:00:09
|
BUY
|
805
|
35
|
100
|
435.6
|
|
12:45:12
|
942
|
61030602
|
438.2
|
12:45:11
|
****
|
BUY
|
35
|
805
|
100
|
438.2
|
|
12:45:12
|
942
|
180732386
|
438.2
|
12:45:00
|
0:00:11
|
SELL
|
805
|
35
|
100
|
438.2
|
|
12:45:24
|
943
|
61030603
|
439.9
|
12:45:22
|
****
|
BUY
|
35
|
805
|
100
|
439.9
|
|
12:45:24
|
943
|
180732387
|
439.9
|
12:45:14
|
0:00:08
|
SELL
|
805
|
35
|
100
|
439.9
|
|
12:45:45
|
944
|
61030608
|
443.5
|
12:45:44
|
****
|
BUY
|
35
|
805
|
100
|
443.5
|
|
12:45:45
|
944
|
180732390
|
443.5
|
12:45:37
|
0:00:07
|
SELL
|
805
|
35
|
100
|
443.5
|
|
12:46:04
|
945
|
31158351
|
445.4
|
12:46:02
|
****
|
SELL
|
35
|
805
|
100
|
445.4
|
|
12:46:04
|
945
|
180732393
|
445.4
|
12:45:54
|
0:00:08
|
BUY
|
805
|
35
|
100
|
445.4
|
|
12:46:15
|
946
|
61030614
|
447.7
|
12:46:15
|
****
|
SELL
|
35
|
805
|
100
|
447.7
|
|
12:46:15
|
946
|
180732394
|
447.7
|
12:46:06
|
0:00:09
|
BUY
|
805
|
35
|
100
|
447.7
|
|
12:46:43
|
947
|
61030620
|
448.2
|
12:46:41
|
****
|
SELL
|
35
|
805
|
100
|
448.2
|
|
12:46:43
|
947
|
180732397
|
448.2
|
12:46:29
|
0:00:12
|
BUY
|
805
|
35
|
100
|
448.2
|
|
12:47:05
|
948
|
61030627
|
449.5
|
12:47:04
|
****
|
BUY
|
35
|
805
|
200
|
449.5
|
|
12:47:05
|
948
|
180732402
|
449.5
|
12:46:51
|
0:00:13
|
SELL
|
805
|
35
|
200
|
449.5
|
|
12:47:37
|
949
|
61030634
|
450.2
|
12:47:37
|
****
|
BUY
|
35
|
805
|
100
|
450.2
|
|
12:47:37
|
949
|
180732407
|
450.2
|
12:47:30
|
0:00:07
|
SELL
|
805
|
35
|
100
|
450.2
|
|
12:48:19
|
950
|
61030638
|
446.7
|
12:48:17
|
****
|
BUY
|
35
|
805
|
100
|
446.7
|
|
12:48:19
|
950
|
180732408
|
446.7
|
12:48:17
|
0:00:00
|
SELL
|
805
|
35
|
100
|
446.7
|
|
12:48:36
|
951
|
61030643
|
447.6
|
12:48:35
|
****
|
BUY
|
35
|
805
|
100
|
447.6
|
|
12:48:36
|
951
|
180732411
|
447.6
|
12:48:29
|
0:00:06
|
SELL
|
805
|
35
|
100
|
447.6
|
|
12:48:54
|
952
|
61030646
|
450.6
|
12:48:53
|
****
|
SELL
|
35
|
805
|
100
|
450.6
|
|
12:48:54
|
952
|
180732412
|
450.6
|
12:48:44
|
0:00:09
|
BUY
|
805
|
35
|
100
|
450.6
|
|
12:49:14
|
953
|
61030649
|
450.9
|
12:49:12
|
****
|
SELL
|
35
|
805
|
100
|
450.9
|
|
12:49:14
|
953
|
180732415
|
450.9
|
12:49:05
|
0:00:07
|
BUY
|
805
|
35
|
100
|
450.9
|
|
12:53:45
|
954
|
61030688
|
450
|
12:53:23
|
****
|
BUY
|
35
|
35
|
10000
|
450
|
|
12:53:45
|
954
|
61030691
|
450
|
12:53:44
|
0:00:21
|
SELL
|
35
|
35
|
10000
|
450
|
|
12:53:55
|
955
|
61030690
|
450
|
12:53:43
|
****
|
BUY
|
35
|
35
|
10000
|
450
|
|
12:53:55
|
955
|
61030695
|
450
|
12:53:54
|
0:00:11
|
SELL
|
35
|
35
|
10000
|
450
|
|
12:54:02
|
956
|
61030692
|
450
|
12:53:50
|
****
|
BUY
|
35
|
35
|
10000
|
450
|
|
12:54:02
|
956
|
61030699
|
450
|
12:54:02
|
0:00:12
|
SELL
|
35
|
35
|
10000
|
450
|
|
12:54:13
|
957
|
61030697
|
450
|
12:53:56
|
****
|
BUY
|
35
|
35
|
10000
|
450
|
|
12:54:13
|
957
|
61030703
|
450
|
12:54:12
|
0:00:16
|
SELL
|
35
|
35
|
10000
|
450
|
|
12:54:22
|
958
|
61030701
|
450
|
12:54:02
|
****
|
BUY
|
35
|
35
|
10000
|
450
|
|
12:54:22
|
958
|
61030706
|
450
|
12:54:20
|
0:00:18
|
SELL
|
35
|
35
|
10000
|
450
|
|
12:54:29
|
959
|
61030702
|
450
|
12:54:09
|
****
|
BUY
|
35
|
35
|
10000
|
450
|
|
12:54:29
|
959
|
61030708
|
450
|
12:54:28
|
0:00:19
|
SELL
|
35
|
35
|
10000
|
450
|
|
12:54:36
|
960
|
61030704
|
450
|
12:54:16
|
****
|
BUY
|
35
|
35
|
10000
|
450
|
|
12:54:36
|
960
|
61030710
|
450
|
12:54:35
|
0:00:19
|
SELL
|
35
|
35
|
10000
|
450
|
|
12:54:42
|
961
|
31158397
|
450
|
12:54:21
|
****
|
BUY
|
35
|
35
|
10000
|
450
|
|
12:54:42
|
961
|
61030713
|
450
|
12:54:41
|
0:00:20
|
SELL
|
35
|
35
|
10000
|
450
|
|
12:54:49
|
962
|
61030707
|
450
|
12:54:27
|
****
|
BUY
|
35
|
35
|
10000
|
450
|
|
12:54:49
|
962
|
61030716
|
450
|
12:54:48
|
0:00:21
|
SELL
|
35
|
35
|
10000
|
450
|
|
12:55:00
|
963
|
61030709
|
450
|
12:54:34
|
****
|
BUY
|
35
|
35
|
10000
|
450
|
|
12:55:00
|
963
|
61030718
|
450
|
12:54:59
|
0:00:25
|
SELL
|
35
|
35
|
10000
|
450
|
|
12:55:06
|
964
|
61030712
|
450
|
12:54:39
|
****
|
BUY
|
35
|
35
|
10000
|
450
|
|
12:55:06
|
964
|
61030720
|
450
|
12:55:06
|
0:00:27
|
SELL
|
35
|
35
|
10000
|
450
|
|
12:55:13
|
965
|
61030715
|
450
|
12:54:45
|
****
|
BUY
|
35
|
35
|
10000
|
450
|
|
12:55:13
|
965
|
61030722
|
450
|
12:55:12
|
0:00:27
|
SELL
|
35
|
35
|
10000
|
450
|
|
12:55:19
|
966
|
61030717
|
450
|
12:54:54
|
****
|
BUY
|
35
|
35
|
10000
|
450
|
|
12:55:19
|
966
|
61030725
|
450
|
12:55:18
|
0:00:24
|
SELL
|
35
|
35
|
10000
|
450
|
|
12:55:24
|
967
|
61030719
|
450
|
12:55:05
|
****
|
BUY
|
35
|
35
|
10000
|
450
|
|
12:55:24
|
967
|
61030727
|
450
|
12:55:23
|
0:00:18
|
SELL
|
35
|
35
|
10000
|
450
|
|
12:55:32
|
968
|
61030721
|
450
|
12:55:11
|
****
|
BUY
|
35
|
35
|
10000
|
450
|
|
12:55:32
|
968
|
61030728
|
450
|
12:55:31
|
0:00:20
|
SELL
|
35
|
35
|
10000
|
450
|
|
12:55:38
|
969
|
61030724
|
450
|
12:55:16
|
****
|
BUY
|
35
|
35
|
10000
|
450
|
|
12:55:38
|
969
|
61030730
|
450
|
12:55:37
|
0:00:21
|
SELL
|
35
|
35
|
10000
|
450
|
|
12:55:46
|
970
|
61030726
|
450
|
12:55:21
|
****
|
BUY
|
35
|
35
|
10000
|
450
|
|
12:55:46
|
970
|
61030733
|
450
|
12:55:44
|
0:00:23
|
SELL
|
35
|
35
|
10000
|
450
|
|
12:55:52
|
971
|
61030729
|
450
|
12:55:35
|
****
|
BUY
|
35
|
35
|
10000
|
450
|
|
12:55:52
|
971
|
61030735
|
450
|
12:55:51
|
0:00:16
|
SELL
|
35
|
35
|
10000
|
450
|
|
12:55:58
|
972
|
61030732
|
450
|
12:55:43
|
****
|
BUY
|
35
|
35
|
10000
|
450
|
|
12:55:58
|
972
|
61030736
|
450
|
12:55:58
|
0:00:15
|
SELL
|
35
|
35
|
10000
|
450
|
|
12:56:04
|
973
|
61030734
|
450
|
12:55:49
|
****
|
BUY
|
35
|
35
|
10000
|
450
|
|
12:56:04
|
973
|
61030737
|
450
|
12:56:03
|
0:00:14
|
SELL
|
35
|
35
|
10000
|
450
|
|
12:56:46
|
974
|
61030742
|
450
|
12:56:38
|
****
|
BUY
|
35
|
35
|
10000
|
450
|
|
12:56:46
|
974
|
61030744
|
450
|
12:56:45
|
0:00:07
|
SELL
|
35
|
35
|
10000
|
450
|
|
12:56:50
|
975
|
61030743
|
450
|
12:56:44
|
****
|
BUY
|
35
|
35
|
10000
|
450
|
|
12:56:50
|
975
|
61030747
|
450
|
12:56:50
|
0:00:06
|
SELL
|
35
|
35
|
10000
|
450
|
|
13:09:47
|
976
|
31158550
|
450.9
|
13:09:46
|
****
|
SELL
|
35
|
805
|
100
|
450.9
|
|
13:09:47
|
976
|
210606701
|
450.9
|
13:09:38
|
0:00:08
|
BUY
|
805
|
35
|
100
|
450.9
|
|
13:10:14
|
977
|
61030888
|
451.2
|
13:10:14
|
****
|
SELL
|
35*
|
805
|
100
|
451.2
|
|
13:10:14
|
977
|
180732535
|
451
|
13:09:46
|
0:00:28
|
BUY
|
805*
|
35
|
100
|
451.2
|
*805- Broker
35- Shri Harish Chandra Biyani
1.8 The investigation conducted by SEBI inter alia observed that the Broker had indulged in price manipulation, creation of artificial market, creation of artificial volumes as a result of the aforesaid synchronized trades/ prior intention to matching orders and price establishment by putting orders at successively higher prices and thereby violated regulation 4( a), (b) , (c) of SEBI (Prohibition of Fraudulent and Unfair Trade practices Relating to Securities Markets) Regulations, 1995 (hereinafter referred to as FUTP Regulations).
2.0 APPOINTMENT OF ENQUIRY OFFICER
2.1 On completion of the said investigation, SEBI appointed an Enquiry Officer, vide order dated July 24, 2003 under regulation 5(1) of SEBI (Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002 (hereinafter referred to as the 2002 Regulations) to enquire into the alleged irregular transactions made by the Broker in the scrip of DSQ.
2.2 The Enquiry Officer issued a show cause notice dated November 28, 2003 to the Broker, in terms of the 2002 Regulations. The extracts of facts, findings and allegations arising out of aforesaid said investigation was also enclosed with the said show cause notice. However, the Broker had failed to file any reply before the Enquiry Officer. The Enquiry Officer had subsequently granted an opportunity of hearing to the Broker on January 20, 2004 and on the said date, Shri Prataprai Gopalji Thacker, the elder brother of the Broker ( as authorized by the Broker vide letter dated January 20, 2004) informed the Enquiry Officer in writing that a detailed reply would be filed to the above show cause notice. However, no reply was received by the Enquiry Officer.
2.3 The Enquiry Officer submitted his report dated March 31, 2004, in terms of the 2002 Regulations and recommended to impose a penalty of the suspension of the certificate of registration of the Broker for a period of three months. The Enquiry Officer in his report has inter alia observed that the Broker had prior intention to artificially raise the price of the scrip and establish a higher price and that the Broker had violated regulation 4(a), (b), (c) and (d) of the FUTP Regulations.
3.0 CONSIDERATION OF ISSUES AND FINDINGS
3.1 Based upon the recommendation of the Enquiry Officer, a show cause notice dated April 29, 2004 was issued to the Broker under regulation 13(2) of the 2002 Regulations asking him to show cause as to why the penalty as considered appropriate should not be imposed upon him. A copy of the Enquiry Report was also forwarded to the Broker with the said show cause notice. The said notice was served on the Broker through CSE. As no reply was received from the Broker, SEBI vide letter dated February 15, 2005 had again requested the Broker to file his reply within 7 days of the receipt of the said letter. It was also informed to the Broker that if he failed to file any reply, SEBI would be free to take any action as deemed fit.
3.2 The Broker, vide his letter dated February 19, 2005 informed SEBI that, he had received the show cause notice dated April 29, 2004 after the deadline given in the said letter and therefore, he had not given any reply. The Broker further stated that he was not very much accustomed with SEBI guidelines which were violated by him. The Broker further requested SEBI to reduce the ‘minor penalty’ to ‘warning’ and also assured that he would not do the said type of transaction in future.
3.3 I have perused the recommendations of the Enquiry Officer, show cause notice issued by SEBI, the aforesaid reply filed by the Broker and other relevant material available on record. The Broker in his letter dated February 19, 2005 contended that he had received the show cause notice after the deadline and hence could not give any reply to the same. I note that the that time limit for filing the reply , as per the show cause notice was 15 days from the date of receipt of the said show cause notice and accordingly he had the opportunity to respond , which he did not avail.
3.4 The Broker has further stated that he was not very much accustomed to SEBI’s guidelines. This explanation does not absolve the Broker, as a stock broker is expected to be well versed with the Rules, Regulations, Guidelines etc. governing the securities markets framed/ issued by SEBI/ Central Government from time to time. I also hold the view that ignorance of law is no excuse and cannot be taken as defense by anybody. Such uninformed brokers by their reckless conduct would put the market in jeopardy.
3.5 I further note that the trades executed by the Broker in the scrip of DSQ has not been disputed by him. On the other hand, the Broker has stated that he was not accustomed with SEBI guidelines. I observe that trading in the scrip of DSQ at CSE on January 01, 2001, January 02, 2001, January 04, 2001 and January 08, 2001 (during the relevant period) was concentrated between the Broker and another member of CSE namely, Shri. Harish Chandra Biyani. I note that the said details had been furnished by the Enquiry Officer to the Broker with his show cause notice dated November 28, 2003. Further the details of the trades executed on January 04, 2001 have been mentioned by the Enquiry Officer as a sample analysis. Out of the above 4 days, the trades executed by the Broker was responsible for the entire volume in the scrip of DSQ at CSE on two days i.e. January 02, 2001 and January 04, 2001 and the same is evident from the tables shown in para 1.5 and 1.6. Further from table shown in para 1.6, it can be seen that the trades (buy orders) were executed by the Broker within few seconds after the sell order was placed by Shri Harish Chandra Biyani. It is also observed that, immediately, the above buy transaction was reversed by the Broker by placing a sell order at a higher rate within few seconds gap after the buy order was placed by Shri Harish Chandra Biyani. The Enquiry Officer in his report had also stated that this pattern was also observed on other days also.
3.6 In the facts and circumstances and the manner in which such transactions were executed in the scrip of DSQ, at successively higher prices, establishes that the Broker indulged in synchronized transactions and circular trading by squaring off the earlier open position with the same counter party broker through whom the earlier open position was created. I also note that, by the aforesaid modus operandi , the Broker had artificially raised the price of the scrip of DSQ from Rs.360/- to Rs.452/- within 4 trading sessions. The artificial volume in the scrip of DSQ during the relevant period between the Broker and Shri Harish Chandra Biyani was created in the scrip of DSQ by way of synchronization of orders.
3.7 In terms of regulation 4 of the FUTP Regulations, No person shall -
(a) effect, take part in, or enter into, either directly or indirectly, transactions in securities, with the intention of artificially raising or depressing the prices of securities and thereby inducing the sale or purchase of securities by any person;
(b) indulge in any act, which is calculated to create a false or misleading appearance of trading on the securities market;
(c) indulge in any act which results in reflection of prices of securities based on transactions that are not genuine trade transactions;
(d) enter into a purchase or sale of any securities, not intended to effect transfer of beneficial ownership but intended to operate only as a device to inflate, depress, or cause fluctuations in the market price of securities;
3.8 On an examination of the trades executed by the Broker in the scrip of DSQ at CSE, as explained above in detail, it can be seen that the said trades were not genuine and were made without any intention to effect the transfer of beneficial ownership of securities and further with an object to inflate the price of the scrip of DSQ. It can be seen that the aforesaid trades in the scrip of DSQ at CSE created a false appearance of trading in the said scrip and in this context , I note that that the majority of the transactions in the said scrip were executed by the Broker during the relevant period. Therefore, the trades executed by the Broker in the scrip of DSQ at CSE can be said to be with an intention of artificially raising the prices of securities and thereby inducing the sale or purchase of securities by unsuspecting investors.
3.9 I note that the Hon’ble Securities Appellate Tribunal in Appeal No.54 of 2002 – Nirmal Bang Securities Pvt. Ltd v SEBI, had interalia observed as under with regard to synchronized deals
“I find the scrip, quantity and price for these orders had been synchronized by the counter party brokers. Such transactions undoubtedly create an artificial market to mislead the genuine investors. Synchronized trading is violative of all prudential and transparent norms of trading in securities. Synchronized trading on a large scale can create false volumes..”
3.10 I note from the trades executed by the Broker on various dates as mentioned above that the quantity and price for these orders had been synchronized by the counter party brokers, which were highly irregular in nature and violative of all prudential and transparent norms of trading in securities and principals of screen based trading where anonymity of the counter party is sought to be maintained. The best price mechanism through trading system of the exchanges would be defeated by these which were executed by the Broker and counter party broker of their respective clients..
3.11 In view of the above and in the in the absence of mitigating circumstances, I do not find any merit in the request made by the Broker to reduce the minor penalty to that of a warning. In view of the facts and circumstances and also the fact no justifiable explanation has been received from the Broker with respect to his transactions made in the scrip of DSQ, I am unable to accept his request in respect of the reduction in penalty. The above facts establishes that the Broker has violated regulation 4( a) to (c) of the FUTP Regulations. In the absence of any mitigating factors, I agree with the findings and recommendations of the enquiry officer.
4.0 ORDER
In view of the forgoing, I, in exercise of the powers conferred vide regulation 13(4) of (Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002, hereby impose a minor penalty of suspension on the certificate of registration (granted by SEBI) of M/s. Amratlal Gopalji Thacker, Broker, Calcutta Stock Exchange Association Ltd. for a period of three months in terms of Regulation 13(1) (a) (iv) of the Enquiry Regulations
This order shall come into force on the expiry of 21 days from today.
| Place : Mumbai |
G ANANTHARAMAN |
| Date: September 08, 2006 |
WHOLE TIME MEMBER
|
| |
SECURITIES AND EXCHANGE BOARD OFINDIA |