SEBI v. Bakliwal Financial Services (India) Pvt Ltd and another (circular trades, Nahar Spinning and Tricom, 2022)

Judgment entered

✓ Checked against the primary document on October 8, 2026. The library's summary, tags and figures for this record were compared with the regulator's own document by an AI model (Claude) following written instructions, in a single reading of the order; an independent second reading of 60 SEBI records agreed on every field for 56, the four misses being penalty amounts; a later sample of 50 of the SEBI records added on 9 October agreed on every field for 46. No lawyer has reviewed them. A checked record can still contain errors, and checked does not mean endorsed. See how we check records or report a correction.

Report an error in this record (sebi-61363-matched-orders-2022) by email

A SEBI whole-time member held two registered stockbrokers, Bakliwal Financial Services and Bakliwal Investment, responsible for circular and synchronized trades in Nahar Spinning Mills and Tricom India shares in 2008. Because the firms were no longer active and the events were 14 years old, he only barred them from taking new clients for three months.

The record

What was ordered

Civil penalty

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Disgorgement

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Prejudgment interest

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Total relief

—

Alleged gain

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A dash means the release did not state a figure we could extract, not that the figure is zero. Penalty and disgorgement are stored separately so aggregates across the library do not double-count the same dollars.

What is alleged to have happened

The final order was issued on 29 July 2022 by a whole-time member of the Securities and Exchange Board of India under the Intermediaries Regulations. The noticees were two registered stockbrokers, Bakliwal Financial Services (India) Pvt Ltd, a broker of the NSE and BSE, and Bakliwal Investment, a broker of the NSE.

A report from the National Stock Exchange had flagged circular and synchronized trading in Nahar Spinning Mills shares between April and July 2008 and in Tricom India shares between May and July 2008. SEBI alleged that the brokers entered synchronized orders without any intention to transfer ownership, creating artificial volume, and that they also used the exchange payout mechanism to raise bank overdrafts. A designated authority recommended suspending their registrations for three months.

The whole-time member held the brokers responsible for breaching Regulation 4(2)(a), (g) and (n) of the PFUTP Regulations and the broker code of conduct, rejecting explanations that were unsupported by evidence. He accepted that the show cause notice did not allege any link to the issuers or any quantified gain at investors' expense.

Weighing the 14-year gap and the fact that neither firm was operating as an active broker, he did not suspend the registrations. He instead prohibited each noticee from registering fresh clients for three months from the date of the order. No monetary penalty was imposed.

The record does not show whether the order was appealed or what volume of trading was affected in total. It describes no criminal case.

This library tags the matter as matched orders (alleged circular and synchronized trades by brokers). The tagging is ours, not the regulator's.

For the regulator's own account of the facts, read the primary document linked above. This page deliberately summarises the structured record rather than reproducing the order.

What technique is this, and how does it work?

This action is tagged with one technique in our taxonomy. The tagging is ours: regulators charge statutory provisions, not technique names, so the mapping is an editorial judgement described in our editorial policy.

• Matched orders — see how it works, what statute it engages, and every other action tagged the same way.

Timeline

1. 2022-07-29 SEBI order

Primary documents

Everything on this page derives from the documents below. Where our summary and the primary document disagree, the primary document is right.

• SEBI order

The linked release is published by the issuing regulator under its own terms. Our summary and narrative above are our own writing.

Related actions

Other actions in the library sharing at least one technique tag with this one.

Record added October 8, 2026. submit a correction.