2011 (2) TMI 1577

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..... or the Respondent. ORDER N.K. Sodhi, The appellant before us is a trader who traded in two scrips of Allcargo Global Logistics Ltd. and Unity Infraprojects Ltd. (hereafter referred to as Allcargo and Unity respectively). Both the scrips are listed on the Bombay Stock Exchange Ltd., Mumbai and the National Stock Exchange of India Ltd. (for short BSE and NSE respectively). The appe .....

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..... course of the investigations and the enquiry conducted by the adjudicating officer, he came to the conclusion that the appellant executed along with others, circular trades in both the scrips and on both the exchanges. Accordingly, by her order dated November 29, 2010 she imposed a monetary penalty of ₹ 3 lacs on the appellant. It is against this order that the present appeal has been file .....

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..... up but the fact that circular trades were executed among a group of traders including the appellant is enough to establish the link as, without her, the chain or link would have broken. The trades executed by the appellant along with the others clearly show that on April 1, 2008 one Rajnish Jain who is also part of the group transferred 1000 shares of Allcargo on BSE to the appellant and another 2 .....

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..... she indulged in unfair trade practices and thereby violated regulation 4 of the regulations. A circular trade is a fictitious trade which is executed on the trading screen of the exchange which does not result in the transfer of beneficial ownership in the traded scrip. Such trades only create false or misleading appearance of trading in the securities market and thereby lure th .....

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..... not increase on the trading screen and that she made no profits out of the trades executed by her and that she stopped trading as she incurred some losses and in this background, the amount of penalty levied may be reduced. Having regard to the peculiar facts and circumstances of this case and taking a sympathetic view, we reduce the penalty to ₹ 1.5 lacs. This shall not be treated as preced .....

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