sebi:AO/BJD/MAS/EAD/128-143/2018
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Facts / Headnote
Penalties imposed on noticees for creating artificial volume in the scrip of Karma Industries Ltd. in contravention of SEBI (PFUTP) Regulations, 2003
Provisions invoked
- s. 15
- s. 12A
- s. 15H
- s. 15I
- s. 15J
Regulations
- Reg. 4
- Reg. 3
- Reg. 4(1)
- Reg. 3(a)
Holding
The Adjudicating Officer held that the 23 connected noticees created artificial volume in the scrip of Karma Industries Ltd. through reversal trades, synchronized trades, and self trades, violating Regulation 3(a),(b),(c),(d) and Regulation 4(1), 4(2)(a) and (g) of SEBI (PFUTP) Regulations, 2003, and imposed penalties under Section 15HA of the SEBI Act.
Full text
Page 2 of 40 BACKGROUND 1. Securities and Exchange Board of India (hereinafter referred to as "SEBI") conducted investigation into trading in the scrip of M/s Karma Industries Ltd. (hereinafter called as ‘Karma’) for the period July 12, 2010 to January 09, 2012 (hereinafter referred to as ‘Investigation Period’) to ascertain whether there was any violation of the provisions of SEBI Act, 1992 and various Rules and Regulations and Guidelines made there under.
Page 3 of 40 SHOW CAUSE NOTICE, REPLY AND PERSONAL HEARING 5. A Show Cause Notice (SCN) was issued to the Noticees by the erstwhile AO on July 31, .2015. A brief background and the charges alleged in the SCN are as under.
Page 4 of 40 Sema Pankaj Shah Seema Pankaj Shah is relative of Pankaj Shah with same address. 8. Prakash Gaurishankar Joshi, Mahendra Chandulal Shah Prakash G Joshi shares common address with Kiran Gaurishankar Joshi who shares a common telephone number with Bhavesh Makawana, director of Parkes Multitrade and Multiplast trading. Mahendra C Shah shares common mobile number with Prakash Joshi
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Source: SecMarx — sebi:AO/BJD/MAS/EAD/128-143/2018. 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.