sebi:IVD-ID9/JDIL/AO/DRK/AKS/EAD3-378/44-13
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Facts / Headnote
Penalty imposed on the noticee for violations of PFUTP Regulations
Provisions invoked
- s. 15
- s. 15H
- s. 15I
- s. 15J
- s. 44A
Regulations
- Reg. 3
- Reg. 4(1)
- Reg. 31
Parties
- Shri Chirag Tanna
Holding
The noticee Shri Chirag Tanna was held to have violated Regulations 4(1) and 4(2)(a), (b) and (e) of the PFUTP Regulations, 2003 by executing synchronized trades in the scrip of JDIL on BSE in collusion with the Nabera Group, and a penalty of Rs. 7,00,000 was imposed under Section 15HA of the SEBI Act. However, the allegation of self trades was not upheld as the noticee's self trades were found to be miniscule (0.044% of total volume) and could not have impacted price or volume.
Full text
Page 2 of 14 APPOINTMENT OF THE ADJUDICATING OFFICER 3. I was appointed as the Adjudicating Officer (subsequent to transfer of Shri Biju S.) vide order dated December 10, 2008, under Section 15I 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 to inquire into and adjudge under Section 15HA of the SEBI Act, the violations of Regulation 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 the ‘PFUTP Regulations’) alleged to have been committed by Shri Chirag Tanna (hereinafter referred to as „noticee‟) with respect to his trading in the scrip of JDIL. SHOW CAUSE NOTICE, REPLY AND HEARING
Page 3 of 14 during the investigation period i.e. from May 10, 2005 to September 02, 2005, in collusion with certain other entities i.e. Samradha Finstock Pvt. Ltd., Emerging Capital Advisors Ltd., V & U Caplease Ltd., Sparkline Mercantile Co Pvt. Ltd., Hem Kanak Mercantile Pvt. Ltd. and Adhunik Finance Pvt. Ltd. (hereinafter referred to as „Nabera Group‟) had executed synchronised trades and self trades which had resulted in creation of artificial volume and manipulation of the price of the scrip of JDIL in BSE.
Page 4 of 14 10. Noticee vide his letter dated 26.04.2013 sought extension of time by one week to submit a reply as he was consulting with his lawyer to prepare a detailed reply. Vide hearing notice dated 03.05.2013 noticee was granted time till 10.05.2013 to submit a reply to the SCN and attend the hearing on 20.05.2013 at SEBI Bhavan, Mumbai.
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Source: SecMarx — sebi:IVD-ID9/JDIL/AO/DRK/AKS/EAD3-378/44-13. 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.