sebi:IVD-ID7/SVIL-HPL/AO/DRK/SS/EAD3/162-09/65-2010
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Facts / Headnote
Penalty imposed on the noticee for fraudulent and unfair trade practices
Provisions invoked
- s. 15
- s. 370
- s. 15H
- s. 15J
Regulations
- Reg. 3
- Reg. 4
- Reg. 13
- Reg. 4(a)
- Reg. 2(1)(e)(2)
- Reg. 2(i)(e)
Parties
- Hanurang Projects Limited
Holding
The noticee, Hanurang Projects Limited, was held to have violated Regulation 4(a), (b), (c) and (d) of the PFUTP Regulations, 1995 read with Regulation 13 of the PFUTP Regulations, 2003 by colluding with other promoter related selling entities, purchasers, and a stock-broker to create artificial volumes and manipulate the price of SVIL shares, and a penalty of Rs.2,00,000 was imposed under Section 15HA of the SEBI Act.
Full text
Page 2 of 15 on 28.01.2003, 29.01.2003, 03.02.2003 and 11.04.2003) the volumes were exceptionally higher. 4. Total traded quantity as provided by CSE in the scrip was 70,15,661 shares. The trading by major stock-brokers was as follows:
Page 3 of 15 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 violation 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’) alleged to have been committed by Hanurang Projects Limited (hereinafter referred to as the ‘noticee’).
Page 4 of 15 10. It was stated in the SCN that the share price at CSE was much at variance when compared to the price of BSE, which could have been attributable to the cross deals executed at CSE wherein the price discovery as well as volumes were artificial and manipulated.
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Source: SecMarx — sebi:IVD-ID7/SVIL-HPL/AO/DRK/SS/EAD3/162-09/65-2010. 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.