9911796707
TMI Blog2010 (10) TMI 1168X X X X Extracts X X X X X X X X Extracts X X X X ..... executed number of cross deals by synchronizing the trades of its clients. The Board had investigated into the buying, selling and dealing in the scrip of the company for the period from September 18, 2000 to March 13, 2001 and noticed that the price of the scrip opened on October 18, 2000 at ₹ 45 and increased to ₹ 119.70 on November 3, 2000 and thereafter started declining and plummeted to ₹ 53 as on March 13, 2001. The appellant was also found to have done front running in the scrip of the company through the account of Apuva Dalal (Apurva), nephew of the proprietor of the appellant. A show cause notice dated April 10, 2003 was served on the appellant communicating the detailed allegations in respect of its transaction ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e learned Counsel for the respondent Board have taken us through the record. There were 13 instances of cross deals executed by the appellant where it had placed buy and sell orders for the related entities exactly at the same time and/or within a time difference of just a few seconds. We find that all these cross deals have been done between promoter entities, delivery has been made and the ownership was also transferred. The deals were settled through the exchange. All these deals were executed on the instructions of the clients. There is no allegation of any relation between the broker and its client and the learned Counsel for the respondent Board also agreed that it is purely a broker-client relationship and nothing else. When queried ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g and is not permitted in the market. It is not disputed that Apurva who was found trading in the scrip of the company, both buyer as well as seller, is the nephew of the proprietor of the appellant company. The appellant was the broker for the related entities and was aware of the pending orders of the other clients of the appellant. The charge is that Apurva made a profit of ₹ 20,082/- on his three days of trading by placing buy orders at a low rate by purchasing the shares of the company at a lower rate in the earlier part of the day and using the knowledge transmitted to him by his uncle that the other clients will come with a higher buy order in the later part of the day, sold the shares to those related entities and made profit. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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