sebi:EAD-7/BJD/NJMR/115-116/2018-19
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Facts / Headnote
Noticees held liable for contravention of Section 12A(a),(b),(c) of SEBI Act read with Regulation 3(a),(b),(c),(d) and Regulation 4(1), 4(2)(a) and (g) of SEBI (PFUTP) Regulations, 2003; penalty imposed (ex-parte)
Provisions invoked
- s. 15
- s. 19
- s. 12
- s. 15H
- s. 15J
Regulations
- Reg. 3
- Reg. 4
Parties
- Vertex Spinning Ltd.
- DMC International Ltd.
- Chetan Dogra
- Chetan Dogra HUF
Holding
The Noticees executed self-trades (wash trades) in the scrips of VSL and DMCIL with manipulative intent, thereby creating artificial volumes and violating Section 12A(a),(b),(c) of the SEBI Act read with Regulations 3 and 4 of the SEBI (PFUTP) Regulations, 2003. The matter was decided ex-parte as the Noticees failed to reply to the SCN or appear for hearing.
Full text
Adjudication Order in the matter of Vertex Spinning Ltd., and DMC International Ltd., Page 2 of 25 IN THE SCRIP OF VSL 2. The price volume information of the scrip of VSL during pre-investigation period, investigation period & post investigation period in BSE is as under: Period Date PV Opening Price(Volum e) on the first day of the period Closing Price(Volume) on the last day of the period Low Price (Volume) during the period High Price (Volume) during the period Average no., of shares traded daily during the period (Total) Before Investigation 04 Jan 2010 To March 31, 2010 Price 3.6 3.18 2.75 (19.02.2010) 4.34 (11.03.2010) 196858 Volume 21847 283515 7306 (09.02.2010) 1083688 (09.03.2010) Investigation Period April 01, 2010 to Sep 30, 10 Price 3.23 2.84 1.64 (05.07.2010) 5 (13.05.2010) 433545 Volume 80223 481758 18576 (08.09.2010) 6266044 (05.07.2010) After Investigation Period Oct 01,2010 to Dec 31, 2010 Price 2.98 2.14 2 (29.12.2010) 4.09 (14.10.2010) 199615 Volume 837567 49189 8852 (24.12.2010) 1517658 (12.10.2010)
Adjudication Order in the matter of Vertex Spinning Ltd., and DMC International Ltd., Page 3 of 25 During the same period, price of the scrip in BSE moved from `3.23 to ` 2.84 registering a decrease of ` 0.39 (12.07 %).
Adjudication Order in the matter of Vertex Spinning Ltd., and DMC International Ltd., Page 4 of 25 have bought 31,01,667 shares (5.59% of traded volume) and 24,28,582 shares (4.38% of traded volume) respectively. The Noticees have sold 63,16,366 shares (11.38% of total traded volume) and 31,03,652 shares (5.59% of total traded volume) respectively.
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Source: SecMarx — sebi:EAD-7/BJD/NJMR/115-116/2018-19. 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.