TaxTMI 
TaxTMI 
2011 (2) TMI 1577
X X X X Extracts X X X X
X X X X Extracts X X X X
....ant. Dr. Poornima Advani, Advocate with Mr. Ajay Khaire, Advocate for 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 I....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ration of the material collected during the 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 o....
X X X X Extracts X X X X
X X X X Extracts X X X X
....of the other persons who formed the group 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 Allcarg....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e appellant stands established and that 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 mar....