sebi:Order/AA/MG/2019-20/5676

SEBI · SEBI · 2016-01-20 · Dr. Anitha Anoop, Adjudicating Officer

This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.

Facts / Headnote

Penalty imposed on the Noticee for violation of PFUTP Regulations

Provisions invoked

• s. 15
• s. 11B
• s. 11
• s. 15H
• s. 15J
• s. 15F
• s. 28A

Regulations

• Reg. 3
• Reg. 4(1)
• Reg. 3(a)
• Reg. 4(2)(e)

Parties

• Shri Vasudev Ramchandra Kamat

Holding

The Noticee, Shri Vasudev Ramchandra Kamat, was found to have violated Regulations 3(a), (b), (c), (d) and 4(1), 4(2)(a), (b) & (g) of the PFUTP Regulations by trading within the Pabari-Parikh Group resulting in creation of artificial volume in the scrip of LGS, but the charge under Regulation 4(2)(e) (price manipulation) was not established. A penalty of Rs. 1,00,000/- was imposed under Section 15HA of the SEBI Act.

Full text

Page 2 of 16 LGS and imposed penalties accordingly. The aforesaid AO order was challenged by the Noticee in the Hon’ble Securities Appellate Tribunal (hereinafter referred as ‘SAT’) in Appeal No. 1 of 2015 and SAT vide order dated January 20, 2016 (herein after referred to as ‘SAT Order’) set aside the AO order with respect to the Noticee and restored the matter to the file of AO.

Page 3 of 16 a) On analysis of the trading activity in the scrip of LGS on BSE, the investigation, prima facie, revealed that a group of seventeen (17) entities including the Noticee were connected to each other and had traded heavily in the scrip of LGS.

Page 4 of 16 c) It was observed from the trade log analysis that 17 Pabari-Parikh Group entities purchased 1,02,42,859 shares accounting for 50.35% of the total traded volume and sold 88,25,263 shares accounting for 43.38% of the total traded volume during the period under investigation. Further, the Noticee purchased 12,300 shares accounting for 0.06% of the total traded volume and sold 14,800 shares accounting for 0.07% of the total traded volume during the period under investigation. Out of 17 PPG entities, 16 PPG entities including the Noticee, had traded 71,94,984 shares (35.37% of the market volume) within PPG entities which accounts for 70.24% of the total purchase of the group and 81.53% of the total sale of the group.

Source: SecMarx — sebi:Order/AA/MG/2019-20/5676. 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.