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Issues involved: Violation of regulations u/s 4(a), (b), (c) and (d) of Securities and Exchange Board of India (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 1995 read with regulations 4(1), 4(2) (a), (b), (e), and (g) of the Securities and Exchange Board of India (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003.
Summary: 1. The appellant, a trader/jobber and short-term investor, was found guilty of violating securities market regulations and was restrained from accessing the market for one year. Allegations included circular/synchronized trades generating artificial volumes in a company's scrip. The appellant denied the allegations, citing lack of complete investigation report and trade logs. 2. The appellant argued that trades were ordinary, anonymous, and automated through a registered stock broker, with no knowledge of counterparties. The appellant's trades were a small portion of alleged irregular trades, not capable of creating an artificial market. The appellant contested findings of reversal trades, claiming misinterpretation by the whole time member. 3. The respondent Board defended providing relevant trade/order logs to the appellant, refuting claims of natural justice violation. The whole time member found the appellant engaged in circular/reversal trades, forming a significant portion of trading in the company's scrip. The order was supported by material linking parties and trade logs. 4. After reviewing the case, the Tribunal upheld the order, stating no interference was warranted. The interconnection between parties, supported by trade logs, was a factor in the Board's findings. Despite the appellant's request for complete documents, the provided extracts were deemed sufficient for defense. The Tribunal found no fault with the whole time member's conclusions, dismissing the appeal. Separate Judgment: No separate judgment was delivered by the judges.
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