sebi:BM/AO-109/2010
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Facts / Headnote
Violation of Regulations 4(1) and 4(2)(a) of PFUTP held established; allegation under Regulation 4(2)(e) dropped; penalty of Rs 75,000 imposed under Section 15HA of SEBI Act
Provisions invoked
- s. 15
- s. 15H
- s. 15J
Regulations
- Reg. 4
- Reg. 3
- Reg. 4(1)
- Reg. 4(2)
- Reg. 4(2)(a)
- Reg. 4(2)(e)
Parties
- Anil Solanki
Holding
The Noticee Anil Solanki was held to have violated Regulations 4(1) and 4(2)(a) of PFUTP for executing synchronized trades creating false appearance of trading, and was imposed a penalty of Rs 75,000 under Section 15HA of the SEBI Act. The allegation under Regulation 4(2)(e) for price manipulation was dropped for lack of substantive evidence.
Full text
Page 2 of 13 2. It was observed that the company EL issued a number of misleading favourable corporate announcements including overstating sales and profits for the June and September 2005 quarters. Further it was observed that around the time when the company was making the misleading announcements several company connected entities transferred huge quantity of shares in the off-market which in turn was sold in the market through another layer of off-market transfer and created volume. It was also observed that the price of the scrip fluctuated during this period and rose from `0.86 in January 2005 and reached `6.97 during June 2005. It was alleged that the price rise and increased trading interest enabled offloading of shares by various related and unrelated entities. The role of the brokers and the entities that had traded in the scrip of EL was scrutinized during the investigation period. It was observed during the investigation that through collusion with the brokers and its clients, shares of EL were transacted in such a manner that led to creation of false and misleading appearance of trading in the market in the scrip.
Page 3 of 13 Officer) Rules, 1995 (hereinafter referred to as ‘Rules’) to inquire into and adjudge the alleged violations of SEBI Act committed by the Noticee.
Page 4 of 13 same by hand or through authorized representative. The Noticee was also advised to submit reply, if any, within 14 days from the date of publication. Further, a copy of the SCN was also uploaded on SEBI website under the heading “Unserved Summons/Notices”. However, despite the publication so made, the Noticee neither got the SCN collected nor submitted any reply.
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Source: SecMarx — sebi:BM/AO-109/2010. 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.