sebi:Order/BD/AA/2020-21/9346-9369
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Facts / Headnote
Penalty imposed on Noticees under Section 15HA of the SEBI Act for violations of PFUTP Regulations, 2003
Provisions invoked
- s. 15
- s. 19
- s. 15H
- s. 15J
- s. 15F
- s. 28A
Regulations
- Reg. 4
- Reg. 3
- Reg. 2(1)(c)
- Reg. 4(1)
- Reg. 4(a)
- Reg. 3(a)
- Reg. 4(2)(a)
- Reg. 4(2)(g)
Holding
The Noticees violated regulations 3(a), (b), (c), (d), 4(1), 4(2)(a), (e) and (g) of PFUTP Regulations, 2003 by manipulating the scrip price of Focus Industrial Resources Ltd. through repeated trading among connected entities via Last Trade Price (LTP) and New High Price (NHP) contribution, and a monetary penalty of Rs. 2,00,000 each was imposed under Section 15HA of the SEBI Act.
Full text
Page 2 of 56 BACKGROUND OF THE CASE 1. Securities and Exchange Board of India (hereinafter referred to as ‘SEBI’) conducted an investigation in the scrip of Focus Industrial Resources Ltd., (hereinafter referred to as ‘FIRL / Company’) inter-alia to ascertain any possible violation of the provisions of SEBI Act, 1992 (hereinafter referred to as ‘SEBI Act’) and the SEBI (Prohibition of Fraudulent and Unfair Trade Practices) Regulations, 2003 (hereinafter referred to as ‘PFUTP Regulations, 2003’) in the trading of certain entities during the period February 1, 2013 to July 30, 2013 (hereinafter referred to as ‘Investigation Period’ / ‘IP’).
Page 3 of 56 3. It was also observed that Roxtech Securities Services (Proprietor: Parmanand Yadav), Yogesh Trading Company (Proprietor: Shashi Yadav), Delware Polymers Private Ltd., Navi Kiran Enterprises (Proprietor: Rakesh Kumar Sharma), Anubhav Mittal, Shobha Jain, Satender Kumar Jain, Chetan Jain, Satender Kumar Jain & Sons HUF and Anand Kumar Jain manipulated the scrip price by trading among themselves repeatedly through Last Trade Price (LTP) contribution. It was also observed that Roxtech Securities Services (Proprietor: Parmanand Yadav), Shobha Jain, Chetan Jain and Satender Kumar Jain & Sons HUF manipulated the scrip price by New High Price (NHP) contribution. In view of the same, it was observed that the said entities had violated the provisions of regulations 3 (a), (b), (c), (d), 4 (1), 4 (2) (a) & (e) of PFUTP Regulations, 2003.
Page 4 of 56 as “Adjudication Rules”) to inquire into and adjudge the alleged violations committed by the Noticees under Section 15HA of SEBI Act.
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