sebi:IVD-ID5/SIL-SIPL/AO/DRK-AKS/EAD3-506/50-2014
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Facts / Headnote
Penalty of Rs. 20,00,000 imposed on the noticee for violation of PFUTP Regulations
Provisions invoked
- s. 15
- s. 15H
- s. 15J
Regulations
- Reg. 3
Parties
- Super Infincon P Ltd.
Holding
The Adjudicating Officer held that Super Infincon P Ltd. violated Regulations 3(a), (b), (c), (d) and 4(1), (2)(a) and (e) of the PFUTP Regulations by indulging in synchronised trades with Danish Merchant in the scrip of Supertex Industries Ltd., and imposed a penalty of Rs. 20,00,000 under Section 15HA of the SEBI Act.
Full text
Page 2 of 9 APPOINTMENT OF ADJUDICATING OFFICER 2. I was appointed as Adjudicating Officer under Section 15 I of the Securities and Exchange Board of India Act, 1992 (hereinafter referred to as ‘SEBI Act’), read with Rule 3 of Securities and Exchange Board of India (Procedure for Holding Inquiry and Imposing Penalties by Adjudicating Officer) Rules, 1995 (hereinafter referred to as ‘Adjudication Rules’) to inquire into and adjudge under Section 15 HA of the SEBI Act the violation of Regulations 3 (a), (b), (c), (d), 4 (1), 4 (2) (a), (b) and (e) of SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 2003 (hereinafter referred to as ‘PFUTP Regulations’) alleged to have been committed by Super Infincon P Ltd., Promoter group entity of Supertex Industries Ltd. (hereinafter referred to as ‘noticee’) and the same was communicated vide proceedings of the Whole Time Member appointing Adjudicating Officer dated 12.04.2013.
Page 3 of 9 4. Noticee vide its letter dated 07.09.2013 requested for date wise break up of 42,812 perfectly synchronised shares. Further the noticee had also requested for 10 days additional time to file a reply to the SCN. Vide our letter dated 12.09.2013, noticee was advised to read para 4 of the SCN as follows: "It is alleged based on the IR that you have indulged in synchronised trades in the scrip with Shri Danish Merchant, who is one of the preferential allottee of the shares of the company. You had bought 2,30,151 shares of the company during the investigation period. Out of 2,30,151 shares, 1,94,564 shares you had bought from Shri Danish Merchant of which 1,64,076 shares were synchronized. Out of 1,64,076 synchronised shares, 42,812 shares were perfectly synchronized (Trades matched within a minute of placing of Orders, Price and Quantity of the shares were also the same)."
Page 4 of 9 consider executed, non-executed (pending, modified, deleted) orders and executed within the purported (group) party and executed outside the group.
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Source: SecMarx — sebi:IVD-ID5/SIL-SIPL/AO/DRK-AKS/EAD3-506/50-2014. 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.