sebi:BM/AO-129/2011
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Facts / Headnote
Penalty of Rs. 50,000 imposed on the Noticee under section 15HA of the SEBI Act for violations of PFUTP Regulations and SEBI Act; Noticee absolved of certain other allegations.
Provisions invoked
- s. 15
- s. 12A
- s. 12
- s. 15J
- s. 15H
Regulations
- Reg. 3
- Reg. 3(a)
Holding
The Noticee was held to have violated Regulation 3(b), 3(c), 3(d), 4(2)(e) of the PFUTP Regulations and Section 12A(a), (b), (c) of the SEBI Act by being part of a group that manipulated the price of RPIL scrip, and a penalty of Rs. 50,000 was imposed under Section 15HA. The Noticee was absolved of allegations of creating artificial volume under Regulation 4(1), 4(2)(a), 4(2)(b), 4(2)(g) and of being associated with RPIL.
Full text
2 of the total traded volume (14,15,192 shares). It is alleged that the Noticee is connected to the above entities and traded among each other to create artificial volume in the scrip of RPIL. It was further observed that during the trading period of the above entities, the price of the scrip of RPIL rose from `.85.50/- (closing price) on April 21, 2008 and closed at `. 122.40/- on May 20, 2008. It was alleged that the Noticee along with the connected entities contributed to a cumulative price rise of `.44.85 with respect to last traded price (LTP), i.e., 59.09% of the total price rise of `.75.90.
3 SHOW CAUSE NOTICE, REPLY AND PERSONAL HEARING 6. Show Cause Notice No. EAD-6/BM/12440/2010 dated July 15, 2010 (hereinafter referred to as ‘SCN’) was issued to the Noticee under rule 4 of the Rules to show cause as to why an inquiry should not be held against the Noticee and penalty be not imposed under section 15 HA of the SEBI Act for the alleged violations specified in the SCN.
4 10. I am convinced that ample opportunity was given to the Noticee to explain the case. As per rule 4(7) of the Rules, if any person fails, neglects or refuses to appear as required by sub- rule (3) before the Adjudicating Officer, she may proceed with the inquiry in the absence of such person after recording the reasons therefore. Despite having been given ample opportunity, the Noticee has failed to avail the opportunity of filing any reply to the SCN and personal hearing. I am, therefore, compelled to proceed with the matter ex-parte based on the materials available on record.
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Source: SecMarx — sebi:BM/AO-129/2011. 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.