Case: 1.SEBI, 2.In Re: Ranbaxy Laboratories Limited Vs 1.Shri Rajendra Kumar Chokhany. Securities and Exchange Board of India
| Judges | V.K. Chopra, Member |
| Issue | Company Law |
| Judgement Date | February 12, 2007 |
| Court | Securities and Exchange Board of India |
Order:
V.K. Chopra, Member
-
BACKGROUND
1.1 Securities and Exchange Board of India (hereinafter referred to in short as "the Board") ordered an investigation into the affairs relating to buying, selling and dealing of many entities in the shares of Ranbaxy Laboratories Ltd (hereinafter referred to in short as "Ranbaxy") including Shri Rajendra Kumar Chokhany, (hereinafter referred to as "Broker") member Calcutta Stock Exchange (hereinafter referred to as "CSE") bearing SEBI Registration no. INB030035019.
1.2 The price of Ranbaxy scrip moved up significantly from Rs. 270/- in January 1999 to about Rs. 1200/- in October 1999 accompanied with significant increase in volumes. The Board initiated preliminary investigation into the scrip in August 1999 considering the major spurt in price and volumes traded in the Exchanges particularly on the Stock Exchange, Mumbai (BSE), National Stock Exchange (NSE) and Calcutta Stock Exchange (CSE).
1.3 The Board after considering the Investigation Report, appointed an Enquiry Officer vide Order dated November 27, 2002 to enquire into the violations allegedly committed by the Broker under the provisions of Regulation 4(a), (b), (c) and (d) of SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Markets) Regulations, 1995 (hereinafter referred to in short as "PFUTP Regulations") Regulation 7 of the SEBI (Stock Brokers & Sub-Brokers) Regulations, 1992 read with Clause A(3) and (4) of Schedule II of the Code of Conduct for Stock Brokers issued under SEBI (Stock Brokers & Sub-Brokers) Regulations, 1992 (hereinafter referred to in short as "Stock Brokers Regulations") and Rules, Regulations and Bye-laws of Stock Exchanges.
1.4 The Enquiry Officer, after conducting an enquiry in accordance with the provisions of Regulation 6 of the Securities and Exchange Board of India (Procedure for holding Enquiry by Enquiry Officer and imposing penalty) Regulations, 2002 (hereinafter referred to in short as "Enquiry Regulations") submitted a report dated October 31, 2003 wherein he observed that the Broker had violated the provisions of SEBI circular No. SMDRP/POLICY/CIR-32/1999 dated September 14, 1999; Regulation 7 read with Clause A(3) and (4) of Code of Conduct as specified in Schedule II of Stock Brokers Regulations and Regulation 4(b) & (c) of PFUTP Regulations. He recommended suspension of registration of the Broker for a period of four months.
-
SHOW CAUSE NOTICE & REPLY
2.1 Pursuant to...
To continue reading
Request your trial