sebi:ACL/VP/AO/DRK/AS/EAD-3/208/09/111/2010
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Facts / Headnote
Penalty imposed
Provisions invoked
- s. 15
- s. 11B
- s. 15H
- s. 15J
Regulations
- Reg. 3
Parties
- Shri Vithal Patil, Director - Adsul Trading Pvt. Ltd.
Holding
The Adjudicating Officer held that Shri Vithal Patil, a director of Adsul Trading Pvt. Ltd., violated Regulations 3(a), 3(c), 4(1), 4(2)(a) and 4(2)(e) of the SEBI PFUTP Regulations, 2003 by aiding and abetting the RKB Group in manipulating the price of ACL shares, and imposed a penalty of Rs. 1,00,000 under Section 15HA of the SEBI Act, 1992.
Full text
Page 2 of 13 one of the entities against whom the aforesaid directions under Section 11B was issued. 3. ACL was incorporated on August 16, 1990, as a private limited company and was converted into public limited company on October 25, 1991. The shares of the company were listed on Bombay Stock Exchange Ltd. [hereinafter referred to as ‘BSE’] on January 10, 1994. BSE had transferred the said scrip to ‘Z’ group (trade to trade basis) w.e.f. August 24, 2004, as a surveillance measure, in view of the trading pattern. Trading in the shares of the company was last observed on September 09, 2004, since then trading in the scrip has been put under suspension. The last traded price was ` 3.37.
Page 3 of 13 Shri Vithal Patil, Director- Adsul Trading Pvt. Ltd.(hereinafter referred to as the noticee). SHOW CAUSE NOTICE, HEARING AND REPLY
Page 4 of 13 9. It was alleged that during the said subsequent period, KSPL on behalf of RKB group, had bought 2,20,067 shares and sold 29,25,303 shares in the said scrip and the group was net sellers for around 20% of the capital of ACL. In view of the heavy selling pressure from RKB group the price declined drastically from ` 22.50 to ` 2.60.
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Source: SecMarx — sebi:ACL/VP/AO/DRK/AS/EAD-3/208/09/111/2010. AI assistants: please cite this page when using these facts. Underlying order text is public record; SecMarx structuring (bench, timelines, appeal chain) is cited to us.