sebi:EAD-5/BS/AO/08-26/2018-19
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Facts / Headnote
Held that Noticees contravened Regulations 3(a) to (d), 4(1), 4(2)(a) and (g) of SEBI PFUTP Regulations, 2003 by indulging in reversal and synchronised trades creating artificial volume in SLCL; no adverse inference drawn for miniscule self-trades of Noticee nos. 13 to 16; monetary penalty of Rs.2,00,000 per Noticee imposed under Section 15HA.
Provisions invoked
- s. 15
- s. 12A
- s. 15H
- s. 15J
- s. 15F
Regulations
- Reg. 4
- Reg. 3
- Reg. 200
- Reg. 4(2)(a)
- Reg. 3(a)
- Reg. 4(2)(g)
Holding
Noticee nos. 1 to 17 indulged in reversal trades constituting 10.74% of NSE and 9.26% of BSE market volume and Noticee nos. 1 to 12, 18 and 19 indulged in synchronised trades, violating Regulations 3(a)-(d), 4(1), 4(2)(a) and (g) of PFUTP Regulations, 2003 and incurring penalty under Section 15HA.
Full text
Page 2 of 54 (hereinafter referred to as “the Company/SLCL”). During the Investigation period i.e. from July 01, 2011 to February 22, 2012, it was observed that a group of 19 entities viz. 1) Shri Bharat Gupta, 2) CRS Traders & Exporters Pvt. Ltd, 3) CRS Wealth Creators Pvt. Ltd, 4) Shri Deepak Kumar, 5) Shri Jitendra Singh, 6) Shri Kailash Candra, 7) Shri Manish Gupta, 8) Shri Manish Kumar, 9) Shri Manish Kumar Gupta, 10) Shri Pradeep Kumar, 11) Shri Sita Ram, 12) Shri Yogesh Rajaput, 13) Nirbharant Constructions Pvt. Ltd. (presently known as Zeno Traders & Services Ltd.) 14) Shri Om Prakash Agarwal, 15) Shri Sarin Pranav, 16) Shri Virendra Bharadwaj, 17) Cityon Nano Technology Pvt. Ltd., 18) Ours Trading and Holdings Pvt. Ltd. and 19) Shri Rajesh Kumar (All the above 19 entities hereinafter referred individually as “Noticee nos. 1 to 19” respectively and collectively as “Noticees”) have indulged in creating artificial volumes in the scrip of SLCL by executing Reversal /Synchronised/Self Trades.
Page 3 of 54 4. Initially SEBI appointed Shri S.V. Krishnamohan as the Adjudicating Officer (AO) vide order dated 26.04.2016. Subsequently, the undersigned was appointed as the Adjudicating Officer vide order dated September 15, 2017 to inquire into and adjudge under Section 15HA of SEBI Act, the violations alleged to have been committed by the Noticees.
Page 4 of 54 It is submitted that all the trades executed in the scrip of Shri Lakshmi Cotsyn Ltd. were from his own funds without having any direct or indirect involvement or intention to violate any rules pertaining to securities law. Noticee no. 4 traded through registered broker and did not deal with any illegitimate entity.
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Source: SecMarx — sebi:EAD-5/BS/AO/08-26/2018-19. 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.