sebi:Order/AK/AS/2022-23/23597-23600
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Facts / Headnote
Noticee Nos. 1, 2 and 3 held to have manipulated price of Zylog Systems Limited and each penalized Rs. 5,00,000 under Section 15HA; allegation against Noticee No. 4 not established with no penalty.
Provisions invoked
- s. 15
- s. 19
- s. 12A
- s. 15H
- s. 15J
- s. 28A
Regulations
- Reg. 3
- Reg. 3(a)
Parties
- Prashant Ashok Gamre
- Hiten Chandrakant Bhai Parmar
- Chetan Mukundrai Parekh
- Nirshilp Securities Pvt Ltd
Holding
Noticee Nos. 1, 2 and 3 manipulated the price of Zylog by contributing to positive LTP as buyers through small-quantity trades in violation of Section 12A(a), (b) and (c) read with PFUTP Regulations 3 and 4 and were each penalized Rs. 5,00,000 under Section 15HA; the allegation that Noticee No. 4 manipulated price as seller was not established.
Full text
Adjudication Order in respect of four entities in the matter of Zylog Systems Limited Page 2 of 21 Hiten Chandrakant Bhai Parmar (hereinafter referred to as “Noticee No. 2”), Chetan Mukundrai Parekh (hereinafter referred to as “Noticee No. 3”) and Nirshilp Securities Pvt Ltd (hereinafter referred to as “Noticee No. 4”) allegedly violated provisions of Section 12A(a), (b) and (c) of the Securities and Exchange Board of India Act, 1992 (hereinafter referred to as “SEBI Act”) read with Regulation 3(a), 3(b), 3(c) and 3(d) and 4(1), 4(2)(a) and 4(2)(e) of SEBI (Prohibition Of Fraudulent And Unfair Trade Practices Relating To Securities Market) Regulations, 2003 (hereinafter referred to as “PFUTP Regulations”).
Adjudication Order in respect of four entities in the matter of Zylog Systems Limited Page 3 of 21 by entering into trades with manipulative trading pattern which resulted in increase in the Last Traded Price (LTP) in the scrip of Zylog. SCN was served on the Noticees, vide Speed Post Acknowledgement Due (SPAD) and digitally signed email dated September 30, 2022, which constitutes valid service as per Rule 7 of the Adjudication Rules.
Adjudication Order in respect of four entities in the matter of Zylog Systems Limited Page 4 of 21 6. Noticee No. 4, vide response dated October 11, 2022, conveyed that the CD carrying Annexures to the SCN received by it was blank. Therefore, vide letter dated October 14, 2022, CD carrying annexures to the SCN was provided to the Noticee No. 4. Vide response dated October 17, 2022, Noticee No. 4 acknowledged receipt of the said CD, and requested for additional time for submitting reply to the SCN. Vide letter dated October 18, 2022, Noticee No. 4 was provided opportunity of personal hearing on November 18, 2022 and was advised to make written submissions, if any, before the aforesaid date of personal hearing. Vide email dated November 10, 2022, personal hearing in the matter was preponed to November 16, 2022. Vide response dated November 11, 2022, Noticee No. 4 submitted reply to the SCN. On November 16, 2022, Mr Pankaj D. Shah and Mr Ashish Jhaveri appeared on behalf of Noticee No. 4, and made submissions relying upon the response dated November 11, 2022.
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Source: SecMarx — sebi:Order/AK/AS/2022-23/23597-23600. 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.