sebi:EAD-7/BJD/NJMR/2019-20/3332-3345

SEBI · SEBI · 2016-09-01 · B J DILIP, 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

Penalties imposed on the Noticees under Section 15HA of the SEBI Act for violations of Section 12A(a), (b), (c) of the SEBI Act and Regulations 3(a), 3(b), 3(c), 3(d), 4(1), 4(2)(a), and 4(2)(e) of the SEBI (PFUTP) Regulations, 2003

Provisions invoked

• s. 15
• s. 19
• s. 12
• s. 15H
• s. 15J
• s. 28A

Regulations

• Reg. 3
• Reg. 4
• Reg. 3(a)

Holding

The 14 Noticees, who were connected to each other, were found to have violated Section 12A(a), (b), (c) of the SEBI Act and Regulations 3(a), 3(b), 3(c), 3(d), 4(1), 4(2)(a), and 4(2)(e) of the SEBI (PFUTP) Regulations, 2003 by engaging in fraudulent trading, synchronized trades, and reversal trades in the scrip of Kushal Tradelink Ltd. during September 1, 2016 to December 30, 2016, and monetary penalties were imposed under Section 15HA of the SEBI Act.

Full text

Adjudication Order in the matter of Kushal Tradelink Ltd., Page 2 of 25 In the matter of Kushal Tradelink Ltd., BACKGROUND 1. Securities and Exchange Board of India (hereinafter referred to as ‘SEBI’) conducted an investigation in the scrip of Kushal Tradelink Ltd., (hereinafter referred to as “KTL” / “Company”) inter-alia to ascertain any possible violation of the provisions of SEBI Act, 1992 and SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market)) Regulations, 2003 by certain connected entities during the period September 1, 2016 and December 30, 2016 (hereinafter referred to as “Investigation Period” / “IP”).

Adjudication Order in the matter of Kushal Tradelink Ltd., Page 3 of 25 01/09/2016- 30/12/2016 IP (Price rise) 163.00 1068105 550.85 (2 dates) 6072102 (14/10/2016) 162.65 (01/09/2016) 6254 (30/09/2016) 550.85 442496 112210443 1368420 02/01/2017- 31/03/2017 Post-IP 550.90 (02/01/2017) 6683165 611.10 (24/01/2017) 6683165 (02/01/2017) 179.95 (11 dates) 207 (03/03/2017) 179.95 3356 23790850 383723

Adjudication Order in the matter of Kushal Tradelink Ltd., Page 4 of 25 Buy LTP analysis of (01/09/2016-30/12/2016) (Price rise) Buyer Name All trades LTP Diff. > 0 LTP Diff. < 0 LTP Diff. = 0 % of positive LTP to Total Market positive LTP Sum of LTP diff Sum of QTY No. of trades Sum of LTP diff QTY traded No. of trades Sum of LTP diff QTY traded No. of trades QTY traded No. of trades Maulik Vinitkumar Parikh 278.75 750284 15812 299.55 287275 5816 -20.80 22321 394 440688 9602 2.03 Arpita Ilesh Patel 203.80 627764 11204 229.85 85575 4451 -26.05 126756 195 415433 6558 1.56 Girishbhai Shantilal Varia 187.95 523865 9581 197.90 237606 3864 -9.95 6902 199 279357 5518 1.34 Karan Subhashchandra Ravde 125.75 289923 7593 135.70 92394 2324 -9.95 18100 196 179429 5073 0.92 Roshanlal Daulatram Aggarwal 108.85 261847 5723 120.20 109380 2319 -11.35 14428 226 138039 3178 0.82 Nilesh Rameshchandra Shah 48.25 468146 8820 119.25 143658 2306 -71.00 63553 1394 260935 5120 0.81 Manishkumar Rajendrasingh Yadav 52.35 357356 9712 76.15 19730 512 -23.80 48390 314 289236 8886 0.52 Quantum Endowment Fund N V 41.15 10339 1411 59.80 1982 233 -18.65 860 138 7497 1040 0.41 Shiv Karan Madaan HUF 33.90 72 43 33.90 1 1 0.00 0 0 71 42 0.23 R B K Share Broking Limited 29.45 4600 34 30.70 753 5 -1.25 981 6 2866 23 0.21 Top 10 Entities Total 1110.20 3294196 69933 1303.00 978354 21831 -192.80 302291 3062 2013551 45040 8.84 Market Total 388.10 112210443 555637 14747.25 17628660 95379 -14359.15 19878142 96682 7470364

Source: SecMarx — sebi:EAD-7/BJD/NJMR/2019-20/3332-3345. 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.