sebi:Order/BM/UR/2022-23/17522-17524
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Facts / Headnote
Penalties imposed on Noticees 1, 2 and 3 for fraudulent and unfair trade practices; Noticee 1 & 2 also held liable for non-compliance with summons
Provisions invoked
- s. 15A
- s. 15
- s. 19
- s. 12A
- s. 12
- s. 11
- s. 15H
- s. 15J
- s. 11C
- s. 11C(3)
- s. 28A
- s. 11C(5)
Regulations
- Reg. 4
- Reg. 3
- Reg. 4(1)
- Reg. 200
- Reg. 3(a)
- Reg. 3(a)(b)(c)
Parties
- Nisha Yadav (Noticee 1)
- Jalaj Agrawal (Noticee 2)
- Prabhakar Rao Alokam (Noticee 3)
Holding
The Adjudicating Officer held that Noticees 1, 2 and 3 violated Regulation 3(a),(b),(c),(d) and 4(1), 4(2)(a), 4(2)(k) of PFUTP Regulations read with Section 12A(a),(b),(c) of the SEBI Act by creating artificial volume and manipulating the price of the scrip of Covidh Technologies through off-market transfers and bulk SMS circulation, and that Noticees 1 and 2 violated Section 11C(3) and 11C(5) of the SEBI Act by not complying with summons issued by the Investigation Authority.
Full text
Page 2 of 70 be receiving shares in the off market and Noticee 1, 2 & 3 were top net sellers during the period of volume spurt in the scrip which was not very liquid. Further Noticee 1 & 2 allegedly failed to comply with the summons issued by the Investigation Authority (hereinafter referred to as “IA”) appointed by SEBI. Thus in view of above adjudication proceedings were initiated for the alleged violations of corresponding provisions of Securities and Exchange Board of India Act, 1992 (hereinafter referred to as “SEBI act”) and PFUTP regulations as tabulated below
Page 3 of 70 and Rule 3 of SEBI (Procedure for Holding Inquiry and Imposing Penalties) Rules, 1995 (hereinafter referred to as “Adjudication Rules”) to conduct adjudication proceedings in the manner specified under Rule 4 of Adjudication Rules read with Section 15-I(1) and (2) of SEBI Act, 1992, and if satisfied that if liable, impose such penalty deemed fit in terms of Rule 5 of Adjudication Rules and Section 15HA, 15HB and 15A(a) of SEBI Act, 1992.
Page 4 of 70 Period Date Opening Price and Volume on the first day of the period (Rs.) Closing Price and Volume on the last day of the period (Rs.) Low Price and Volume during the period (Rs.) High Price and Volume during the period Average No of shares traded daily during the period Vol. 1821 Nov 17, 2016 1535 Feb 15, 2017 5 Dec 16, 2016 18,550 Jan 06,2017 During IP Feb 16, 2017- Feb 21, 2017 Price 3.65 Feb16, 2017 3.67 Feb 21, 2017 3.4 Feb 20, 2017
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Source: SecMarx — sebi:Order/BM/UR/2022-23/17522-17524. 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.