Through Calcutta Stock Exchange
EAD /BR/80750/2006
November 27, 2006
Bissen Dayal Dayaram
Member of Calcutta Stock Exchange
SEBI Regn No. INB 030045812
Notice under Regulation 6(1) of Chapter II of SEBI (Procedure for Holding Enquiry by Enquiry Officer & Imposing Penalty) Regulations, 2002
1. SEBI had conducted an investigation into the dealings in the shares of DSQ Industries Ltd.
2. In terms of the findings of the investigation, you were alleged to have entered into synchronized transactions with Titan Stock Broking Ltd.(‘TSBL’) the details of which are given below:
|
Trade
Date
|
Trade
Time
|
Member
Name
|
Buy/
Sell
|
Qty
|
Buy Order
Time
|
Price
|
Sell
Order
Time
|
Counter
Party
Broker
|
Order
No.
|
|
14.1.00
|
15:27:04
|
Bissen
Dayal
|
Buy
|
1000
|
15:27:04
|
112
|
15:27:03
|
TSBL
|
30348264
|
|
20.1.00
|
15:13:15
|
Bissen
Dayal
|
Sell
|
1000
|
15:13:15
|
130
|
15:13:15
|
TSBL
|
150255480
|
|
28.1.00
|
14:59:55
|
Bissen
Dayal
|
Buy
|
100
|
14:59:55
|
173
|
14:59:56
|
TSBL
|
120303365
|
3. It has been alleged that on 14/01/200 and 28/01/2000, the only transaction done at the Exchange was between TSBL and you. Furthermore on 20/01/2000, the majority of the volume at the Exchange was alleged to be a result of your transaction with TSBL.
4. You were also alleged to have bought 1000 shares @ Rs. 112 (8% higher than the previous closing) per share from TSBL on January 14, 2000 and sold the same quantity on January 20, 2000 to TSBL @ Rs.130 per share while on January 28, 2000, you were alleged to have bought 100 shares for Rs 173(7.5% higher than the previous closing) per share which was sold by TSBL.
5. The above transactions were alleged to have created artificial volume and price rise at the Exchange resulting in the violation of Regulation 4 of the SEBI(Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 1995 and the corresponding provision of Regulation 4 (2) of the SEBI(Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003 and Clause A of Schedule II read with Regulation 7 of the SEBI (Stock Brokers and Sub Brokers) Regulations, 1992.
6. In view thereof, SEBI ordered an enquiry against you on May 23, 2003 and Shri J. Ranganayakulu was appointed as the Enquiry Officer in this regard. However the case was then transferred to Shri R. Mohan vide order dated July 24, 2003 Shri R. Mohan submitted his enquiry report dated October 29, 2004 to the SEBI recommending issuance of warning to you.
7. You are advised to note that upon reviewing the findings of the Enquiry Officer, the competent authority has remitted the case and ordered de novo proceedings in this case and in this context, have vide order dated September 8, 2006 appointed the undersigned as the Enquiry Officer.
8. In view of the aforesaid, you are advised to show cause, as to why enquiry proceedings should not be held against you under the provisions of the Enquiry Regulations for the aforesaid contraventions and why the appropriate penalty as specified in Regulation 13 of said Regulations should not be imposed on you. You are also advised to make your submissions, if any, along with proof of documents, if any (also in soft copy in MS-Word) in support of your contentions within 21 days from the date of receipt of this notice. You may also specify in your reply whether you desire to be heard in person in this regard.
9. In case you fail to submit your reply within the stipulated period, it will be presumed that you have no submissions to offer in your defense and the matter would be further proceeded on the basis of the material available on record.
G. Babita Rayudu
Enquiry Officer