sebi:EAD/SR/SM/AO/62/2017-18
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Facts / Headnote
Violations of PFUTP Regulations, 2003 and PIT Regulations, 1992 upheld; monetary penalty imposed under sections 15HA and 15A(b) of the SEBI Act, 1992
Provisions invoked
- s. 15A
- s. 15
- s. 15H
- s. 15J
Regulations
- Reg. 3
- Reg. 13
- Reg. 4(1)
- Reg. 4(a)
- Reg. 3(a)
- Reg. 4(2)(a)
- Reg. 4(2)(e)
Parties
- Fizu M. Patel
Holding
The Noticee Fizu M. Patel was held to have violated regulations 3(a), 3(b), 3(c), 3(d), 4(1), 4(2)(a) and 4(2)(e) of the PFUTP Regulations, 2003 by trading among group entities to manipulate the price of Popular Estate Management Limited shares, and regulation 13(2A) of the PIT Regulations, 1992 by failing to make required disclosures as a promoter. Monetary penalties were imposed under sections 15HA and 15A(b) of the SEBI Act, 1992.
Full text
Adjudication Order in respect of Fizu M. Patel in the matter of Popular Estate Management Limited Page 2 of 19 by IA that the Noticee along with other eight (8) entities in Group-I viz. (1) Komal Priyesh Patel, (2) Bhumi Prathmesh Patel, (3) Asha Rajendrabhai Patel, (4) Krinesh Farms Pvt Ltd, (5) Vikram Farms Pvt Ltd, (6) Saranga Farms Pvt Ltd, (7) Priyesh Ramanlal Patel and (8) Runali Vikram Patel (hereinafter collectively referred to as Fizu Group) had traded in the shares of Popular during the period of investigation and contributed to Last Traded Price (LTP), New Low Price (NLP) and First trades and as a result created artificial volume in the said scrip of Popular and therefore violated the provisions of regulations 3(a), 3(b), 3(c) and 3(d), 4(1), 4(2)(a) and 4(2)(e) of SEBI(Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities market) Regulations, 2003 (hereinafter referred to as PFUTP Regulations, 2003). Further, Noticee became a promoter on October 01, 2012 and he was holding 28,899 shares of Popular at that point of time. IA observed that, being a promoter of the Company, the Noticee was required to make disclosure to the Company as prescribed under SEBI (Prohibition of Insider Trading) Regulations, 1992 (hereinafter referred to as PIT Regulations, 1992). However, the Noticee, failed to make relevant disclosures as prescribed under PIT Regulations, 1992. It was observed by IA that the Noticee has violated the regulation 13(2A) of PIT Regulation
Adjudication Order in respect of Fizu M. Patel in the matter of Popular Estate Management Limited Page 3 of 19 SHOW CAUSE NOTICE, REPLY AND PERSONAL HEARING
Adjudication Order in respect of Fizu M. Patel in the matter of Popular Estate Management Limited Page 4 of 19 Table - 1 S N Name (Seller) All Trades LTP Diff. >0 LTP Diff. <0 LTP Diff. =0
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Source: SecMarx — sebi:EAD/SR/SM/AO/62/2017-18. 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.