sebi:BM/AO-8/2011
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Facts / Headnote
Violation of regulations 4(1) and 4(2)(a) of PFUTP established; penalty of Rs. 3,00,000 imposed under section 15HA of SEBI Act. Allegations under regulations 4(2)(b), (e) and (g) not established.
Provisions invoked
- s. 15
- s. 15H
- s. 15J
Regulations
- Reg. 4
- Reg. 3
- Reg. 4(1)
Parties
- Chirag Pujara
Holding
The Noticee was found to have aided and abetted the promoters in fraudulently dealing in the shares of ALL by engaging in synchronized trading that created artificial volume, thereby violating regulations 4(1) and 4(2)(a) of PFUTP. However, allegations under regulations 4(2)(b), (e) and (g) could not be established for lack of evidence.
Full text
Page 2 of 16 viz: Aditya Jain, Divya Jain, Shakuntala Jain, Kumud Jain, Rajkumar Jain, Vivek Jain, Shivani Jain and Advik Finance and Properties Private Limited transferred shares to the connected/related entities and started trading actively among themselves and entered into synchronized transactions in the market. This created artificial volume and generated more demand in the scrip and as a result, the share price increased and subsequently the promoters offloaded their own shares.
Page 3 of 16 SHOW CAUSE NOTICE, HEARING AND REPLY 6. Show Cause Notice No. EAD-5/VSS/JR/118433/2008 dated February 27, 2008 (hereinafter referred to as “SCN”) was issued to the Noticee under rule 4(1) of the Rules to show cause as to why an inquiry should not be held against the Noticee and penalty be not imposed on the Noticee under section 15HA of SEBI Act for the alleged violation specified in the said SCN.
Page 4 of 16 as sell and of intra-day nature and delivery based also. I did not take any ^ advantage of misleading corporate announcements as stated (or otherwise) in the SCN. ¾ It is pertinent to mention that though allegation of synchronization has been made, no
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Source: SecMarx — sebi:BM/AO-8/2011. 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.