sebi:IVD-ID6/KSERA-I-VT/AO/DRK/ASG/EAD3-/224-2009/128-2010
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Facts / Headnote
Penalty of ₹1,00,000 imposed on the noticee for violations of Regulation 4(1) and 4(2)(a), (b), (e) and (g) of the PFUTP Regulations
Provisions invoked
- s. 15
- s. 15H
- s. 15J
Regulations
- Reg. 3
- Reg. 4(1)
Parties
- Victory Trading Corporation
Holding
The Adjudicating Officer held that Victory Trading Corporation violated Regulation 4(1) and 4(2)(a), (b), (e) and (g) of the PFUTP Regulations by executing synchronized/circular trades and indulging in non-genuine transactions in the scrip of KSERA, and imposed a penalty of ₹1,00,000 under Section 15HA of the SEBI Act.
Full text
Page 2 of 14 vide its letter dated February 19, 2007 referred the matter to SEBI for consideration. 3. SEBI conducted an investigation into the trading of the scrip of KSERA, during the period from June 01, 2004 to October 31, 2004 (hereinafter referred to as ‘Investigation Period’). During this period, the shares of KSERA were listed only in BSE. The Investigation Report observed that during the Investigation Period the price of the scrip opened at ` 83.00 on June 01, 2004, reached period low of ` 79.90 on June 01, 2004, touched a high of ` 164.00 on October 28, 2004 and closed at ` 151.75 on October 29, 2004. During the period from June 1, 2004 to June 25, 2004 the scrip moved gradually from ` 79.90 to ` 117.10 in 19 trading days. Thereafter the scrip registered a day high of ` 130 on June 28, 2004. The price was moving in a range of ` 105 to ` 125 till July 14, 2004. Thereafter the price of the scrip sharply moved up from ` 121 (opening price on July 15, 2004) to ` 149 (intra-day high on July 16, 2004) in two trading days.
Page 3 of 14 APPOINTMENT OF ADJUDICATING OFFICER 5. I was appointed as the Adjudicating Officer (subsequent to the transfer of Shri Biju S.) vide order dated December 10, 2008, under section 15 I of Securities and Exchange Board of India Act, 1992 (hereinafter referred to as the ‘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 15HA of the SEBI Act, the violations of Regulation 4(1) and 4(2) (a), (b) (e) and (g) of SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 2003 (hereinafter referred to as the ‘PFUTP Regulations’) alleged to have been committed by Victory Trading Corporation (hereinafter referred to as ‘the noticee’).
Page 4 of 14 violation of Regulation 4(1) and 4(2) (a), (b) (e) and (g) of the PFUTP Regulations. No reply has been received from the noticee.
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Source: SecMarx — sebi:IVD-ID6/KSERA-I-VT/AO/DRK/ASG/EAD3-/224-2009/128-2010. 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.