sebi:AJS/AO/01/2011
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Facts / Headnote
Penalties imposed on all seven noticees for violation of PFUTP Regulations
Provisions invoked
- s. 15
- s. 15J
Regulations
- Reg. 3
- Reg. 4(1)
Parties
- Naresh Gupta
- Monika Gupta
- Rajeev Seth
- Anjani
- Manish Gaurav
- Naresh Kumar
- Amit B Aggarwal
Holding
The noticees were found to have violated Regulation 4(1) and 4(2)(a), (b), (e) and (g) of the PFUTP Regulations, 2003 by engaging in synchronized/structured trading that created artificial volumes in the scrip of Vipul Ltd. Monetary penalties ranging from Rs. 5,000 to Rs. 50,000 were imposed on each noticee under section 15HA of the SEBI Act, 1992.
Full text
Page 2 of 22 referred to as ‘investigation period’). The scrip was listed at Bombay Stock Exchange (“BSE”). 2. The role of brokers and their clients who had traded in the scrip of Vipul was investigated. Investigation revealed that a group of entities (hereinafter referred to as “Group”), some of whom were connected, were trading significantly in the scrip and were indulging into synchronized trading/ circular trading/ reversal of trades in a significant manner.
Page 3 of 22 5. It was also observed that members of the Group used to place number of buy and sell orders alternatively, mostly for the same quantity with each subsequent order at a price higher than previous order within a span of 1 to 3 minutes clearly indicating towards the intention to raise the price of the scrip and creating artificial volume in the scrip.
Page 4 of 22 9. Naresh Gupta vide letter dated March 03, 2010 sought time to submit his reply and his reply was received on May 05, 2010. He has in its reply mentioned the following:
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Source: SecMarx — sebi:AJS/AO/01/2011. 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.