sebi:EAD/PM-AA/AO/2/2017-18

SEBI · SEBI · 2017-05-18 · Prasanta Mahapatra, Adjudicating Officer

This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.

Facts / Headnote

Show Cause Notice disposed of without imposition of any penalty

Provisions invoked

• s. 15H
• s. 15I

Regulations

• Reg. 3
• Reg. 200
• Reg. 3(a)
• Reg. 4(2)(a)
• Reg. 4(2)(g)

Parties

• AKG Securities and Consultancy Ltd

Holding

The Noticee's 889 self-trades in Prakash Constrowell Limited were held to be non-intentional and non-manipulative, so violations of Regulations 3(a), (b), (c), (d), 4(1), 4(2)(a) and (g) of PFUTP Regulations, 2003 were not established. The Show Cause Notice dated July 27, 2017 was disposed of without imposition of any penalty.

Full text

Adjudication Order in respect of AKG Securities and Consultancy Ltd in the matter of Prakash Constrowell Limited Page 2 of 9

Adjudication Order in respect of AKG Securities and Consultancy Ltd in the matter of Prakash Constrowell Limited Page 3 of 9

Adjudication Order in respect of AKG Securities and Consultancy Ltd in the matter of Prakash Constrowell Limited Page 4 of 9 orders originating from these strategies interact with each other without any malicious intention.  SEBI’s policy dated May 16, 2017 has settled the position once and for all that self-trades per se does not create market volume and manipulate the price of the scrip, but those self-trades which creates market volume and manipulate the price of the scrip will be treated as fraudulent.  Noticee carried out 81,433 trades for 33,85,571 shares of PCL during the investigation period of which self-trade happened for a meagre quantity of 1,84,408 shares through 889 trades. As per the SCN itself trades of the noticee was 10.33% of the total market volume and out of which only 0.56% of total market volume of trades has resulted into self-trades.  If the volume of NSE is also taken into account then the percentage of self-trades quantity to market volume will be a meagre 0.24%. Since the volume transacted in self-trades is a factor to analyze the manipulative intention of a person as per the SEBI policy dated May 16, 2017 and the same being 0.24% in the instant case, it cannot be said that there was any manipulative intent to engage in intentional self-trades.  The day wise analysis of the self-trades is as under: Trading Days Total no. of shares in self-trades (A) Total no. of shares trade at BSE & NSE (B) % (A/B*100) 04.10.11 1,48,893 3,35,21,893 0.44 05.10.

Source: SecMarx — sebi:EAD/PM-AA/AO/2/2017-18. 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.