sebi:AO/SBM/EAD-3/143/2018

SEBI · SEBI · 2014-03-25 · Suresh B Menon, Adjudicating Officer

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Facts / Headnote

Noticee held liable for penalty under Section 15HA of the SEBI Act for violating PFUTP Regulations read with Section 12A of the SEBI Act (penalty amount not stated in the excerpt)

Provisions invoked

• s. 15
• s. 19
• s. 12A
• s. 15H
• s. 15J
• s. 259
• s. 167
• s. 470

Regulations

• Reg. 3
• Reg. 4(1)
• Reg. 3(a)

Parties

• Shyam Gupta

Holding

The Noticee was held liable for penalty under Section 15HA of the SEBI Act for repeatedly executing self-trades in the scrip of Vipul during IP-1 and IP-2, thereby creating artificial volume in an illiquid scrip in violation of Regulations 3(a)-(d) and 4(1), 4(2)(a), 4(2)(g) of the PFUTP Regulations read with Section 12A(a), (b), (c) of the SEBI Act.

Full text

Page 2 of 28 January 22,2009) and during IP 2, the price of the scrip increased from Rs 71.50 ( as on October 7, 2009) to register a high of Rs 80.95 as on October 26, 2009 and closed at Rs 69.55 ( as on January 11, 2010). In light of the above, it was alleged that Noticee, by repeatedly indulging in self-trades in the scrip of Vipul during IP-1 and IP-2, had created a false and misleading appearance of trading in the scrip without any change in the beneficial ownership of security and, thereby, violated the provisions of Regulations 3(a), (b), (c), (d) and Regulations 4(1), 4(2)(a) and 4(2) (g) of SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003 (hereinafter referred to as “PFUTP Regulations”) read with Section 12A(a), (b) and (c) of the SEBI Act, 1992 (hereinafter referred to as “SEBI Act”). In view of the alleged violations of the aforementioned provisions of the SEBI Act and PFUTP Regulations by the Noticee, it is alleged that the Noticee was liable for penalty under the provisions of section 15HA of the SEBI Act. APPOINTMENT OF ADJUDICATING OFFICER

Page 3 of 28 under the provisions of Section 15HA of the SEBI Act for the aforementioned alleged violation of the relevant provisions of the PFUTP Regulations read with SEBI Act, as mentioned in the SCN.

Page 4 of 28 volume and gross sell volume respectively. These self trades contributed between 3.67 % to 38.97% to day's market volume. The details of all these self-trades executed by the Noticee during IP- 2 are as below- Client Buy Broker Sell Broker Self Trade Qty. No. of Self Trades Sum of LTP diff. () % of self trd qty. to day's mkt vol % of Self Trd Qty. to Clnts Buy Vol % of Self Trd Qty. to Clnts Sell Vol. Shyam Gupta Arch Finance Ltd. Kotak Sec. Ltd. 30900 2 -0.15 30.73% to 38.97% 6.07 7.10 Shyam Gupta

Source: SecMarx — sebi:AO/SBM/EAD-3/143/2018. 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.