sebi:Order/GR/KG/2021-22/11972

SEBI · SEBI · 2019-04-12 · G. Ramar, Adjudicating Officer

This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.

Facts / Headnote

Penalty of Rs. 5,00,000 imposed on the Noticee

Provisions invoked

• s. 15
• s. 15H
• s. 15I
• s. 15J

Regulations

• Reg. 3
• Reg. 4
• Reg. 13
• Reg. 4(a)

Parties

• Ojas Suppliers Limited

Holding

The Noticee, Ojas Suppliers Limited, violated Regulation 4(a), (b), (c) and (d) of the PFUTP Regulations, 1995 read with Regulation 13 of the PFUTP Regulations, 2003. A penalty of Rs. 5,00,000 under Section 15HA of the SEBI Act, 1992 was imposed on the Noticee.

Full text

(“Prince”) in order to create artificial volumes and manipulate the price of the scrip of SVIL on the Calcutta Stock Exchange.

(hereinafter referred to as 'Bubna') and the purchasers Rocky Marketing Pvt. Ltd. and Prince Securities in order to create artificial volumes and manipulate the price of the scrip SVIL in CSE. It was also alleged that the Noticee had sold 1.5 lakh shares through the stock-broker Bubna.

the period January 16, 2003 to February 3, 2003. However, on February 6, 2003, Bubna transferred 6 lakh shares to Rocky Marketing. On February 10, 2003, 5 lakh shares were purchased by Rocky Marketing, the seller being Amluckie Investments Ltd (PRE) and the price being Rs. 14.97, almost 35% higher than the price on January 31, 2003. During the process Rocky Marketing had purchased 10.50 lakh shares approx. However, it was observed that 13 lakh shares had been delivered to Rocky Marketing, out of which 3 lakh shares were returned to Bubna, whereas 5 lakh shares were returned to Divya Dealers (PRE). Balance 5 lakh shares were sold by Rocky Marketing through another CSE stock broker viz Prakash Chand Nahata. The dues to Bubna on account of purchase of these shares were netted against sale of approx 13.5 lakh shares of Blue Chip India Ltd (a Group company of SVIL) through Bubna, buyer being Prince Securities who was not aware of the said purchases in its account. As a result of these purchases, the debit balance in the account of Prince shot-up to Rs. 2.13 crore. However, it seems from the share holding pattern of Blue Chip that the shares sold and delivered by Rocky Marketing were held by Bubna. It was also alleged that the Noticee had sold 1.5 lakh shares of SVIL in collusion with the stock-broker Bubna.

Source: SecMarx — sebi:Order/GR/KG/2021-22/11972. 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.