S.S.N. Moorthy, Member - This appeal is filed against an order passed by the adjudicating officer of the Securities and Exchange Board of India (for short the Board) imposing a penalty of Rs. 3 lacs on the appellant under section 15HA of the Securities and Exchange Board of India Act, 1992. The adjudicating officer found the appellant guilty of violating regulation 4 of the Securities and Exchange Board of India (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 2003 (FUTP Regulation) and accordingly penalty of Rs. 3 lacs was imposed.

2. The appellant is the proprietor of M/s. Rajesh N. Jhaveri. He was engaged in trading of the scrip of M/s. Adani Exports Ltd. (the company) and he was found to have acted, alongwith a few other entities, in the manipulation of the scrip of the company. The Board conducted investigations in the buying, selling and dealing in the shares of the company for the period November 27, 2003 to December 23, 2003. During investigation, it was noticed that there was sharp increase in the price and volume of the scrip on National Stock Exchange of India Limited (NSE) and the Bombay Stock Exchange (BSE). The pric