sebi:BM/AO-95/2011
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Facts / Headnote
Allegation of violation of regulations 4(2)(a) and (e) of PFUTP not established; allegation of violation of sections 11C(3) and 11C(5) of SEBI Act established; penalty of Rs. 5,00,000 imposed under section 15A(a)
Provisions invoked
- s. 15A
- s. 15
- s. 15H
- s. 15J
Regulations
- Reg. 4
Parties
- Neelkanth Goods Pvt. Ltd.
Holding
The Adjudicating Officer held that the allegation of market manipulation under regulations 4(2)(a) and (e) of PFUTP was not established due to lack of corroborative evidence, but held that the Noticee's failure to comply with three summonses issued by the Investigating Authority violated sections 11C(3) and 11C(5) of the SEBI Act, warranting a penalty of Rs. 5,00,000 under section 15A(a).
Full text
Page 2 of 13 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 13 APPOINTMENT OF ADJUDICATING OFFICER 6. 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 13 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-95/2011. 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.