sebi:Order/AP/VS/2020-21/10576-10578
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Facts / Headnote
Violations established; consolidated monetary penalty of ₹25,00,000/- under section 15HA imposed jointly and severally on all three Noticees, and additional penalty of ₹5,00,000/- under section 15HB on Noticee No. 3
Provisions invoked
- s. 15
- s. 12A
- s. 15H
- s. 15I
- s. 15J
- s. 28A
Regulations
- Reg. 3
- Reg. 4(1)
- Reg. 15
- Reg. 2(c)
Parties
- Rachita Shripalkumar Shah (Noticee No. 1)
- Shripal Sheshmal HUF (Noticee No. 2)
- Shripal Sheshmal (Noticee No. 3)
Holding
The Noticees No. 1 and 2 violated section 12A(a), (b) and (c) of the SEBI Act and regulations 3(a), (b), (c), (d) read with 4(1), 4(2)(a), (e) and (g) of the PFUTP Regulations by indulging in fraudulent, unfair and manipulative acts including placing buy orders above prevailing sell order rates with negligible quantity and executing self-trades. Noticee No. 3 (the broker) violated section 12A(a), (b) and (c) of the SEBI Act, regulations 3(a), (b), (c), (d) read with 4(1) and 4(2)(a) of the PFUTP Regulations, and clause A(2) of the Code of Conduct for Stock Brokers.
Full text
__________________________________________________________________________ Adjudication Order in respect of 3 Noticees in the matter of Garware Polyester Limited Page 2 of 16 Table No. 1: Price movement at BSE Period Dates
__________________________________________________________________________ Adjudication Order in respect of 3 Noticees in the matter of Garware Polyester Limited Page 3 of 16 a) From the above table, it is noted that top 10 LTP contributors have contributed positive LTP of ₹170.1/- which is 33.80% of total market positive LTP contribution i. e ₹503.30. Among top 10 positive LTP contributing clients, two entities Rachita Shripalkumar Shah (Noticee No. 1) and Shripal Sheshmal HUF (Noticee No. 2) were found connected as they both share common address, Email and contact details. b) It was observed that out of the 10 entities, trades of Noticees No. 1 and 2 have contributed total positive LTP of ₹80.40/- (15.98% of total market positive LTP) in 64 trades. c) An illustration of highest positive LTP contributing trades of the Noticees No. 1 and 2 are given as below: Table No. 3: Positive LTP contributing trades of the Noticee No. 1 and 2 S.No. Entities Date
__________________________________________________________________________ Adjudication Order in respect of 3 Noticees in the matter of Garware Polyester Limited Page 4 of 16 iv. Sr.no.4: Vide order ID 14000166225236 at 10:16:24, the Noticee No. 1 placed buy order at ₹63.90/- for 1 share to match a sell order ID 14000169000937 for 19 share placed at 12:12:03. The matching orders contributed to LTP of ₹3.75/-. v. Sr.no.5: Vide order ID 17000131055048 at 10:16:24, the Noticee No. 2 buy order at ₹74.90/- for 1 share to match his own order ID 11000090050301 for 1 share placed at 10:16:24. The matching orders contributed to LTP of ₹3.30/-. vi. Sr.no.6: Vide order ID16000110028966 at 09:31:46, the Noticee No. 2 placed buy order at ₹75.50/- for 1 share to match a sell order ID 19000128027468 for 25 share placed at 09:29:49. The matching orders contributed to LTP of ₹. 3.30/-. e) From the above analysis, it is observed that the Noticees No. 1 and 2 placed buy orders above prevailing sell order rates after the sell orders are available in the system with negligible buy quantity. On further analysis it is observed that out of 64 positive LTP trades, 34 trades for 123 shares were self-trades which have contributed positive LTP of ₹45.75/-.
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Source: SecMarx — sebi:Order/AP/VS/2020-21/10576-10578. 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.