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2015 (8) TMI 287 - AT - Companies LawManipulative, fraudulent and unfair trade practices – Circular trading – Non-compliance of statutory requirement– Penalty was imposed for violation of Regulations 4(1), 4(2)(a), 4(2)(e) of SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 2003 and violation of Code of Conduct for Stock Brokers – Held that:- not in dispute that six clients of Appellant acted in collusion amongst each other in synchronized / circular / reversal manner, thereby artificially increased volume / price of GIL scrip – Rule 260 of BSE specifically holds stock broker fully responsible for all acts of its employees – Appellant executed more than 25% of trades in scrip, carried out synchronized, reversal and circular trading thereby manipulated price – Since fraudulent transactions took place from terminal of Appellant in ordinary course of business, appellant cannot escape liability– No fault in impugned order – Appeal dismissed – Decided against appellant.
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