sebi:Order/BD/AB/2020-21/10317-10322
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Facts / Headnote
Noticees found liable for violation of PFUTP Regulations; penalty imposed (amount not specified in excerpt)
Provisions invoked
- s. 15A
- s. 15
- s. 11
- s. 15H
- s. 15J
- s. 28A
Regulations
- Reg. 3
- Reg. 3(a)
Parties
- Orbit Financial Consultants Pvt Ltd (Orbit)
- Rupak Trading Pvt Ltd (Rupak)
- Marutinandan Infosolutions Pvt Ltd (Maruti)
- Sanjukta Vanijya Pvt Ltd (Sanjukta)
- Darshan Tradelink Pvt Ltd (Darshan)
- Jalan Cement Works Ltd (Jalan)
Holding
The Noticees were held liable for fraudulent and unfair trade practices in the scrip of BPML on its listing day by routing IPO funds through multiple entities under the guise of share applications to create false buying pressure and support the share price. The Adjudicating Officer found the share application and refund transactions were a sham designed to camouflage fraudulent trades.
Full text
Page 2 of 25 Ltd. (hereinafter be referred to as, “Orbit”), Rupak Trading Pvt. Ltd. (hereinafter be referred to as, “Rupak”), Marutinandan Infosolutions Pvt. Ltd. (hereinafter be referred to as, “Maruti”), Sanjukta Vanijya Pvt. Ltd. (hereinafter be referred to as, “Sanjukta”) and Darshan Tradelink Pvt. Ltd. (hereinafter be referred to as, “Darshan”) under Section 15HA of the Securities and Exchange Board of India Act, 1992 (hereinafter be referred to as, the “SEBI Act”), for the alleged violation of Regulations 3(a), (b), (c), (d), 4(1), 4(2)(a) and (e) of SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003 (hereinafter be referred to as "PFUTP Regulations"). The above entities are hereinafter collectively referred to as ‘Noticees’.
Page 3 of 25 6. On the listing day (July 07, 2011), 2205 out of the 2966 retail allottees had sold their shares (2,49,81,435 shares in total). All 5 HNI clients had sold all of their shares (16,14,000 shares). 2 of the QIBs had also sold shares (10,90,500 shares) on the listing day. The counterparties to these retail clients were analyzed and the same was compared with the net buyers and loss makers on the listing day. Following are the tabular details of the analysis: Net buyers/loss makers on listing day/Counterparties to IPO allottees' sell trades:
Page 4 of 25 Securities towards their pay-in obligation against buy trades in the scrip of BPML on listing day. Summary of fund flow is as follows:
You have read the preview. Create a free account to read the full order, track this party, and analyse it in Ontology.
Free accounts include 10 searches/day with full order access.
Source: SecMarx — sebi:Order/BD/AB/2020-21/10317-10322. 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.