sebi:BM/AO-92/2011
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Facts / Headnote
Allegations of market manipulation under PFUTP regulations 4(2)(a) and (e) not established; violation of sections 11C(3) and 11C(5) of SEBI Act established; penalty of Rs. 4,00,000 imposed under section 15A(a) of SEBI Act.
Provisions invoked
- s. 15A
- s. 15
- s. 15H
- s. 15J
Regulations
- Reg. 4
Parties
- Mukund Merchandize Pvt. Ltd.
Holding
The Noticee's alleged violation of regulations 4(2)(a) and (e) of PFUTP for market manipulation was not established due to lack of evidence, but the Noticee was held liable for violating sections 11C(3) and 11C(5) of the SEBI Act by failing to comply with three summonses issued by the Investigating Authority, and a penalty of Rs. 4,00,000 was imposed under section 15A(a) of the SEBI Act.
Full text
Page 2 of 14 Prasad Shah (hereinafter referred to as “RPS”), constituted 85% of the volume in the scrip of BPL. The role of the brokers and the entities who had traded in the scrip of BPL was scrutinized. It was alleged that through collusion with the brokers and their clients, shares of BPL were transacted in such a manner that led to creation of artificial volume in the scrip and was designed to create a false market leading to significant price movement in the scrip.
Page 3 of 14 APPOINTMENT OF ADJUDICATING OFFICER 5. Shri Piyoosh Gupta was appointed as Adjudicating Officer vide order dated February 18, 2007 under section 15 I of Securities and Exchange Board of India Act, 1992 (hereinafter referred to as “SEBI Act”) read with rule 3 of SEBI (Procedure for Holding Inquiry and Imposing Penalties by Adjudicating Officer) Rules, 1995 (hereinafter referred to as ‘Rules’) to inquire into and adjudge the alleged violations of provisions of SEBI Act and PFUTP committed by the Noticee.
Page 4 of 14 2010. The notice was affixed at the last known address of the Noticee. However, neither did the Noticee appear nor extension was sought by the Noticee.
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Source: SecMarx — sebi:BM/AO-92/2011. 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.