sebi:IVD-ID7/SVIL-ARL/AO/DRK/SS/EAD3/154-09/57-2010
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Facts / Headnote
Penalty of Rs.3,50,000 under Section 15HA imposed for violation of Regulation 4(a), (b), (c) and (d) of PFUTP Regulations, 1995; allegation of violation of Regulation 7(1A) of Takeover Regulations held not established
Provisions invoked
- s. 15
- s. 370
- s. 15H
- s. 15J
Regulations
- Reg. 7
- Reg. 3
- Reg. 4
- Reg. 13
- Reg. 11
- Reg. 4(a)
- Reg. 2(i)(e)
Parties
- ACME Resources Ltd. (formerly Mantra Online Limited)
Holding
The noticee violated Regulation 4(a), (b), (c) and (d) of the PFUTP Regulations, 1995 read with Regulation 13 of the PFUTP Regulations, 2003 and is liable to penalty of Rs.3,50,000 under Section 15HA of the SEBI Act. The allegation of violation of Regulation 7(1A) of the Takeover Regulations as PAC / companies under the same management was held not established.
Full text
Page 2 of 17 3. The price of the scrip of SVIL opened at Rs.8.60/- on 01.11.2002 and reached Rs.9.50/- on 26.12.2002. Thereafter the scrip picked up momentum and went upto Rs.65.75/- on 23.04.2003. On a few days (i.e. on 28.01.2003, 29.01.2003, 03.02.2003 and 11.04.2003) the volumes were exceptionally higher.
Page 3 of 17 APPOINTMENT OF ADJUDICATING OFFICER 8. I was appointed as the Adjudicating Officer vide order dated December 10, 2008 (subsequent to the transfer of the previous Adjudicating Officer Shri Biju S.), 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 Sections 15HA and 15A(b) of the SEBI Act, the violations of Regulation 4(a), (b), (c) and (d) of the Securities and Exchange Board of India (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 1995 (hereinafter referred to as ‘PFUTP Regulations, 1995’) read with the provisions of Regulation 13 of the Securities and Exchange Board of India (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 2003 (hereinafter referred to as ‘PFUTP Regulations, 2003’) and Regulation 7(1A) of the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 1997 (hereinafter referred to as ‘Takeover Regulations’), alleged to have been committed by the noticee.
Page 4 of 17 10. In the SCN it was alleged that the noticee as a promoter related selling entity of SVIL along with other promoter related selling entities had colluded with the stock-broker Bubna Stock Broking Services Ltd. (hereinafter referred to as ‘Bubna’) and purchasers, Rocky Marketing Pvt. Ltd. (hereinafter referred to as ‘Rocky’) and Prince Securities, in order to create artificial volumes and manipulate the price of the scrip SVIL in CSE. It was alleged that the noticee had sold 1.5 lakh shares through the stock- broker Bubna.
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Source: SecMarx — sebi:IVD-ID7/SVIL-ARL/AO/DRK/SS/EAD3/154-09/57-2010. 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.