sebi:Order/AS/GD/2022-23/22498-22510
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Facts / Headnote
All 13 Noticees held liable for contravention of section 12A(a),(b),(c) of SEBI Act, 1992 read with regulations 3(a),(b),(c),(d) and 4(1), 4(2)(a), 4(2)(e) of PFUTP Regulations, 2003; monetary penalty of Rs. 5,00,000 imposed on each Noticee under section 15HA of the SEBI Act, 1992.
Provisions invoked
- s. 11B
- s. 11
- s. 15
- s. 12A
- s. 15H
- s. 15J
- s. 15F
- s. 28A
- s. 15I(1)
Regulations
- Reg. 3
- Reg. 3(a)
Holding
The Noticees were found to have indulged in manipulative and fraudulent trade practices in the scrip of SFL International Limited during the investigation period, creating a misleading appearance of trading through small coordinated trades and artificial volume, in contravention of section 12A of the SEBI Act and regulations 3 and 4 of the PFUTP Regulations. Each of the 13 Noticees was imposed a penalty of Rs. 5,00,000 under section 15HA of the SEBI Act.
Full text
Adjudication Order in the matter of SFL International Limited Page 2 of 47 SEBI (Prohibition of Fraudulent and Unfair Trade Practices) Regulations, 2003 (hereinafter referred to as “PFUTP Regulations”), if any. The company was listed on Bombay Stock Exchange (BSE) and the period of investigation was from December 30, 2016 to July 14, 2017 (hereinafter referred to as Investigation Period/IP).
Adjudication Order in the matter of SFL International Limited Page 3 of 47 SHOW CAUSE NOTICE, REPLY AND HEARING 4. A common Show Cause Notice ref. SEBI/HO/EAD-8/PM/GD/12315/1-13/2022 dated March 24, 2022 (hereafter referred to as SCN) was issued to the Noticees in terms of the provisions of rule 4 of the Adjudication Rules, 1995 vide speed post. I note that SCN was delivered only to Noticee 5, 6 and 7. Subsequently service of SCN to other Noticees was attempted through email on August 30,2022 after obtaining email IDs from the UCC details maintained by MIIs. The said email has bounced not back from the Noticees email IDs.
Adjudication Order in the matter of SFL International Limited Page 4 of 47 failed to appear for the scheduled hearing. The details of the hearings given are as under:
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Source: SecMarx — sebi:Order/AS/GD/2022-23/22498-22510. 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.