sebi:EAD/KS/MKG/AO/97/2017-18
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Provisions invoked
- s. 15
- s. 15H
- s. 15J
- s. 12A
Regulations
- Reg. 2(c)
- Reg. 3
- Reg. 3(a)
- Reg. 4(2)(g)
Holding
This is a Noticee's reply submission to a Show Cause Notice alleging violation of PFUTP Regulations for self-trades in Ujaas Energy Limited (UEL) scrip, not an adjudicating order. The Noticee argues that intention is a prerequisite for fraud under Regulations 3 and 4 of PFUTP Regulations, and that its self-trades were unintentional and incidental to jobbing/arbitrage activities.
Full text
Page 2 of 29 Particulars BSE (Rs.) NSE (Rs.) Low Price (during post listing investigation period) 204.70 204.50 Close Price ( On 31/10/2011) 206.40 205.80 Traded Quantity 2,52,33,620 3,13,38,101
Page 3 of 29 was given 15 days of time to make their submission against the allegations made in the SCN. 5. It was alleged in the SCN to Noticee that it had entered into self-trades repeatedly, which created artificial volume in the scrip leading to a false and misleading appearance of trading in the scrip of UEL in the securities market. The details of the self-trades entered into by the Noticee on BSE as per IR are given below:
Page 4 of 29 Adjudicating Officer) Rules, 1995 (hereinafter referred to as “the Adjudication Rules”) read with Section 15-I of the Securities and Exchange Board of India Act, 1992 (hereinafter referred to as “SEBI Act”) and penalty not be imposed under 15HA of the SEBI Act for the alleged contravention of Regulations 3(a), (b), (c), (d), 4(1), 4(2)(a) and (g) of the SEBI (Prohibition of Fraudulent and Unfair Trade Practices) Regulations,2003 (“PFUTP Regulations”) for the alleged irregularities in the scrip of Ujaas Energy Limited (hereinafter referred to as “UEL”). ii. At the outset, Our Client submits that, they do not accept or admit anything stated in your goodself’s Notice except where the same is expressly admitted by them in this reply. Nothing stated herein shall be deemed to be admitted by them merely on account of non-traverse and unless the same is specifically admitted by them hereunder. iii. The major allegations levied in the captioned Notice is that Our Client has entered into 2,054 self trades for 3,30,634 shares and so has created artificial volume in the scrip of UEL and gave a false and misleading appearance of trading in the scrip of UEL at the Exchanges. iv. Our Client submits that although there may be some quite infrequent, random and insignificant instances of self-trade while doing jobbing activities, but those were purely accidental/incidental in the ordinary course of business and not planned to be executed to manipulate trading in the scrip. The ran
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Source: SecMarx — sebi:EAD/KS/MKG/AO/97/2017-18. 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.