SEBI v. JHP Securities Pvt Ltd (fictitious backdated trades, Global Telesystems, 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.
A SEBI whole-time member found that the stockbroker JHP Securities issued contract notes for trades in Global Telesystems shares in 2000 that never took place on the exchange. Because the events were about 20 years old, he sanctioned the firm with a warning rather than a suspension.
The record
| Agency | SEBI (India) |
|---|---|
| Date filed | 2022-09-05 |
| Date resolved | 2022-09-05 |
| Court | SEBI whole-time member |
| Status | judgment |
| Asset class | equities |
| Instruments | Global Telesystems Ltd shares |
| Venue | BSE |
| Criminal parallel | No |
| Bars imposed | Warned to be more careful in future dealings as a stockbroker |
| Defendants | JHP Securities Private Ltd |
| Techniques |
What was ordered
- Civil penalty
- —
- Disgorgement
- —
- Prejudgment interest
- —
- Total relief
- —
- Alleged gain
- —
What is alleged to have happened
The final order was issued on 5 September 2022 by a whole-time member of the Securities and Exchange Board of India under the Intermediaries Regulations. The noticee was JHP Securities Private Ltd, a stockbroker and trading member of the NSE, BSE and Metropolitan Stock Exchange. A designated authority had recommended a censure.
The matter began with an October 2002 complaint from Tata Finance Ltd, which said that fictitious and backdated sales and purchases of shares of Global Telesystems Ltd and of an unlisted company later merged into it were executed between Niskalp Investment and Trading Ltd and Tata Finance between September and December 2000. Three brokers were involved, among them JHP, and the transactions were connected with a Tata Finance rights issue.
The whole-time member held that the noticee failed to show that the claimed trades happened on the BSE on the dates stated, and that the contract notes it issued to the clients were fictitious documents for non-existent transactions. He found that the firm had breached the PFUTP Regulations and the broker code of conduct. He noted that the firm did not reply to the show cause notice.
In view of the passage of about 20 years, the fact that subscribers to the rights issue had twice been offered a chance to withdraw, and a Securities Appellate Tribunal outcome in which two other parties in the same episode were only warned, he sanctioned the firm with a warning. No penalty, suspension or bar was imposed.
The record does not show whether the order was appealed or what the trades earned the clients. It describes no criminal case. This record has no technique tag because the conduct, fabricated trades and contract notes, fits none of the library's manipulation techniques.
This library tags the matter as not mapped to any manipulation technique. 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.
Timeline
- 2022-09-05 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.