sebi:EAD-2/DSR/RG/05/2013
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Facts / Headnote
Violation established; monetary penalty imposed under Section 15HA
Provisions invoked
- s. 15
- s. 12A
- s. 15H
- s. 15J
- s. 27
Regulations
- Reg. 3
- Reg. 3(a)
Parties
- Shri Hemant Ratilal Shah
Holding
The Noticee violated Section 12A(a), (b) and (c) of the Act read with Regulations 3(a), (b), (c) & (d) and 4(1) & 4(2)(a), (b) and (g) of the PFUTP Regulations by executing four fictitious self trades in Servalakshmi Papers Limited on listing day. A monetary penalty of Rs. 2,00,000 under Section 15HA of the Act was imposed on Shri Hemant Ratilal Shah.
Full text
Page 2 of 12 Trading in the shares commenced on both National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) from May 12, 2011 and on that day the price of the scrip opened at `30.00 and `29, went up to a high of `48.75 / `48.70, went down to a low of `17.30 / `17.70, and closed at `19.00 / `19.05, respectively and thus, registering a fall of around 35%.
Page 3 of 12 Notice, Reply & Personal Hearing: 6. A notice dated June 05, 2013 (hereinafter referred to as the ‘SCN’) was issued to the Noticee in terms of Rule 4 of the Adjudication Rules requiring him to show cause as to why an inquiry should not be held for the alleged violations. It was alleged in the SCN that the Noticee had dealt in the scrip of SPL as a client and executed four self trades on the listing day of the IPO of SPL and thereby creating artificial / fictitious volumes in the said scrip. The Noticee vide letter dated June 14, 2013 requested for an extension of time of one month to submit his reply to the said SCN which was acceded to. Vide his letter dated July 23, 2013, the Noticee submitted his reply to the SCN.
Page 4 of 12 (i) Whether the Noticee has violated the provisions of Section 12A (a), (b) and (c) of the Act read with Regulation 3(a), (b), (c) & (d) and 4(1), 4(2)(a), (b) and (g) of the SEBI PFUTP Regulations? (ii) Does the violation, if any, on the part of the Noticee attract any
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Source: SecMarx — sebi:EAD-2/DSR/RG/05/2013. 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.