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Case: 1.SEBI, 2.In Re: Ranbaxy Laboratories Ltd. Vs 1.Mahesh Kumar Damani. Securities and Exchange Board of India

Judgment Cited in Precedent Map Related
Vincent
JudgesV.K. Chopra, Member
IssueCompany Law
Judgement DateJune 14, 2007
CourtSecurities and Exchange Board of India

Order:

V.K. Chopra, Member

  1. Securities and Exchange Board of India (hereinafter referred to in short as "SEBI") conducted investigation into the affairs relating to buying, selling and dealing in the shares of Ranbaxy Laboratories Ltd.

  2. SEBI, after considering the investigation report, appointed an Enquiry Officer vide Order dated November 29, 2002 to enquire into the violations allegedly committed by the broker Mahesh Kumar Damani (hereinafter referred to in short as "the Broker") under the provisions of Regulation 4(a), (b) (c) & (d) of the SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 1995, Regulation 7 read with the Clause A (3) and (4) of Code of Conduct as specified in Schedule II of SEBI (Stock Brokers and Sub-Brokers) Regulations, 1992 and Rules, Regulations and Bye-laws of Stock Exchange.

  3. The Enquiry Officer submitted a report dated February 26, 2004. I have perused the said report and the other material documents relied upon by him to arrive at a conclusion in the proceedings against the Broker in the matter of Ranbaxy Laboratories Ltd. It is observed from the said report that the Enquiry Officer has recommended no action against the Broker. While giving the above recommendation, the Enquiry Officer has also observed that the Broker may be cautioned to be careful in future since benefit of doubt has been given to him in the matter. The Enquiry Officer observed that the Broker is required to develop system to monitor the transactions executed on their trading terminals on a continuous basis.

  4. On the basis of the above observation, a post enquiry show cause notice dated September 24, 2004 was issued to the Broker. The Broker submitted reply to the said show cause...

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