sebi:EAD/BJD/BKM/78/2017-18
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Provisions invoked
- s. 15
- s. 15H
- s. 15I
- s. 15J
- s. 15F
Regulations
- Reg. 3
- Reg. 4(1)
- Reg. 200
- Reg. 3(a)
- Reg. 3(c)
- Reg. 3(b)
- Reg. 4(2)(a)
- Reg. 3(d)
Parties
- M/s Blue Peacock Securities Pvt. Ltd.
Holding
The Adjudicating Officer found that M/s Blue Peacock Securities Pvt. Ltd. manipulated the order book by placing large fully disclosed buy orders away from prevailing market prices, creating artificial demand, and then selling shares while those orders were pending, thereby engaging in fraudulent and unfair trade practices and 'bait and switch' manipulation in contravention of Regulations 3(d), 4(1) and 4(2)(a) of the PFUTP Regulations.
Full text
Page 2 of 30 Adjudication order against M/s Blue Peacock Securities Pvt. Ltd. in dealings of Mr Vishal Kishore Bhatia (S.C.), and Siddharth Chaturvedi vs. SEBI (Civil Appeal No. 14730 of 2015 decided on March 14, 2016) relating to the discretionary power of Adjudicating Officer while imposing penalty under Section 15 HA of SEBI Act, counsel for the parties state that the order impugned in the appeal be quashed and set aside and the matter be restored to the file of the Adjudicating Officer of SEBI for passing fresh order on merits and in accordance with law by leaving all contentions open.”
Page 3 of 30 Adjudication order against M/s Blue Peacock Securities Pvt. Ltd. in dealings of Mr Vishal Kishore Bhatia pending quantity it was observed that when major selling transactions were executed the noticee's concentration to market pending orders was significant on buy side. It was further noted during the investigation that the buy orders placed by the noticee (which were placed significantly below the market prices and subsequently deleted) were with fully disclosed quantities whereas the sell orders were placed at partially disclosed quantities.
Page 4 of 30 Adjudication order against M/s Blue Peacock Securities Pvt. Ltd. in dealings of Mr Vishal Kishore Bhatia i. created a false impression of artificial demand in the scrips by placing buy orders with large quantities below the market price, ii. by selling the shares in the market at the time when its large buy orders at below the prevailing market price were pending and subsequently cancelling these buy orders prior to conducting majority of the buying activity, acted in fraudulent manner, iii. was involved in BAIT and SWITCH activity i.e. noticee entered buy/sell orders lower/higher than the market price, fully disclosed the orders but actually transacted on the opposite side in the market, across various scrip and for several days, and iv. manipulated the order book by giving false impression in the market about the demand and supply of various scrip during the investigation period and thereby misled the investors.
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Source: SecMarx — sebi:EAD/BJD/BKM/78/2017-18. 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.