sebi:IVD-ID3/ERA-SP/AO/DRK/VVK/EAD3-347/13-2013
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Facts / Headnote
Penalty imposed on the noticee for violation of PFUTP Regulations
Provisions invoked
- s. 15
- s. 15H
- s. 15J
Regulations
- Reg. 4(1)
- Reg. 31
Parties
- Shri Sunil Purohit
Holding
The noticee Shri Sunil Purohit violated Regulations 4(1) and 4(2)(a) and (g) of the PFUTP Regulations by executing synchronized trades and creating artificial volume in the scrip of Era during the investigation period, and a penalty of Rs. 8,00,000 was imposed under Section 15HA of the SEBI Act.
Full text
Page 2 of 14 2. During the investigation period, the scrip was listed at BSE, Delhi Stock Exchange Association Ltd. ( hereinafter referred to as "DSE") and Ahmedabad Stock Exchange Ltd. ( hereinafter referred to as "ASE"). However, no trading was reported at DSE and at ASE during the investigation period. The shares of the company were also listed at National Stock Exchange of India Ltd. w.e.f. March 27,2006, i.e. post-investigation period. The company has subsequently changed its name to Era Infra Engineering Ltd. w.e.f. February 11, 2008.
Page 3 of 14 S.Sharma); - ISJ Securities Pvt. Ltd. ( dealing on behalf of Vijay Rathod); - VSE Stock Services Ltd. ( dealing on behalf of Mehul Shah );
Page 4 of 14 8. Based on the investigation report ( hereinafter referred to as "IR"), it was alleged in the SCN that the group of which the noticee was a part had traded significantly in the scrip of Era during the investigation period and on analyzing the trading pattern amongst the major stock brokers on the gross purchases and gross sales, it was observed that the trades were synchronized in nature and had created artificial volume in the scrip. These trades resulted in violation of regulations 4(1) & 4(2)(a) and (g) of the PFUTP Regulations.
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Source: SecMarx — sebi:IVD-ID3/ERA-SP/AO/DRK/VVK/EAD3-347/13-2013. 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.