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TMI Blog2012 (1) TMI 333X X X X Extracts X X X X X X X X Extracts X X X X ..... rohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003 (for short the Regulations). He has found that the appellant, in collusion with certain brokers and clients, had executed synchronized trades on the Bombay Stock Exchange in the scrip of Jindal Drilling & Industries Ltd. (for short the company) and indulged in non-genuine/fraudulent transactions in violation of the Regulations which resulted in creation of artificial volume, manipulation of the price of the scrip and distorting the market equilibrium. The appellant was served with a show cause notice dated July 25, 2008 requiring it to show cause as to why an enquiry should not be held against it and penalty imposed for the said violations. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nna Total Samradha Finstock 0 5000 31500 2051 50484 64105 153140 Emerging Capital 0 0 0 23354 0 3100 26454 Sparkline Mecantile 21390 200 25331 44384 73208 164513 V&U Caplease 5298 1402 5444 500 1227 17093 30964 Hem Kanak Mercantile 62634 0 37040 17152 0 42783 159609 Chirag Tanna 35325 0 67584 19962 49355 2525 174751 Total 124647 6402 141768 88350 145450 202814 709431 These trades are not disputed by the parties. The case of the appellant is that in penalty proceedings, it is incumbent on the authority to bring out a clear connection with the group entities and the appellant. The only connection that has been brought out by the adjudicating officer is that Emerging Capital Advisors Lim ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lso established the relationship between the concerned entities. Shri Chirag Tanna was introduced to the stock broker M R Share Broking Pvt. Ltd. by Shri Dilip Nabera, who is one of the contact persons/directors of both Emerging Capital Advisors Ltd. and Adhunik Finance Pvt. Ltd. As per the information provided by NSE Mayrose Capfin Pvt. Ltd. and Samradha Finstock Pvt. Ltd. have the same address. Emerging Capital Advisors Ltd. and the noticee are located at the same address and also have same phone number. Common address was mentioned in the letterheads of both the noticee and Mayrose Captin Pvt. Ltd. One of the directors of Hem Kanak Mercantile Pvt. Ltd., Mrs. Sadhana Nabera is the wife of Shri Dilip Nabera. The BSE Investigation Report h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... This cannot happen without prior meeting of minds among the connected entities. From the details of the trades executed and having regard to the trading system, we do not think that such large number of trades could match between the same parties unless the trading system was being abused. Therefore, we have no hesitation in upholding the findings recorded by the adjudicating officer in the impugned order. 4. It was then argued by the learned counsel for the appellant that under similar facts and circumstances relating to the same transaction in relation to two other group entities namely, Hem Kanak Mercantile Private Limited (Appeal no. 171 of 2009 decided on 11.3.2010) and Samradha Finstock Pvt. Ltd. (Appeal no. 204 of 2010 decided on 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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