January 03, 2006
PR No. 02/2006

Order against M/s. Pawan J.Chaudhary, Member of BSE Ltd.

Securities and Exchange Board of India (SEBI) has passed an order against M/s. Pawan J. Chaudhary, Member of Bombay Stock Exchange Ltd., Mumbai under Regulation 13(4) of SEBI (Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002 directing that the certificate of registration of M/s. Pawan J. Chaudhary, SEBI Regn No. INB 010019411, be suspended for a period of 30 (thirty) days in the matter of Vision Technology India Ltd. (VTIL).
 
The order has been passed by Shri Madhukar, Whole Time Member, SEBI on December 26, 2005.
 
SEBI had conducted an investigation into the dealings of VTIL for the period from December 1998 to March 2000, wherein sudden spurt in the price and volume was observed. It was seen that at BSE the price had increased from Rs.4/- to Rs.650/- during this period. Investigations revealed that M/s. Pawan J. Chaudhary was one of the top broker who have dealt in this scrip and enquiry proceedings were initiated.
 
On receipt of the report from Enquiry Officer, show cause notice was issued to M/s. Pawan J. Chaudhary. After considering the submissions made by the broker, it has been found that the broker has committed the violation of not having collected any initial margins from the clients. Thus, the certificate of registration of the member has been suspended for a period of 30 (thirty) days.
 
The order will come into force after the expiry of three weeks from the date of the order.
 
 
Mumbai
 
January 03, 2006