sebi:Order/GR/KG/2021-22/12041

SEBI · SEBI · 2019-04-09 · G Ramar, Adjudicating Officer

Reviewed by Varun Matlani, Advocate — Securities Lawyer practicing in SAT and SEBI

Facts / Headnote

Adjudication proceedings disposed of; no violation found, no penalty imposed

Provisions invoked

• s. 15
• s. 12A
• s. 12
• s. 15H
• s. 15J

Regulations relied on

• SEBI (PFUTP) Regulations, 2003 — 3(a)

Parties

• Swift Tie Up Pvt. Ltd.

Holding

The Adjudicating Officer held that the allegations against Swift Tie Up Pvt. Ltd. for violation of Section 12A of the SEBI Act and Regulations 3(a), (b), (c), (d), 4(1), 4(2)(a), 4(2)(b), 4(2)(e) of the PFUTP Regulations, 2003 were not established, and consequently no monetary penalty under Sections 15HA and 15HB of the SEBI Act was imposed.

Full text

Adjudication Order w.r.t Swift Tie Up Pvt. Ltd. in the matter of IPO of Tijaria Polypipes Ltd. Page 2 | 18 2011 the price of TPL in NSE, fell from the highest price of Rs 67.75 per share to Rs 16.50 per share while in BSE, it fell from the highest price of Rs 67.80 per share to Rs 16.05 per share. It is noted from the Investigation Report that Swift Tie Up Pvt. Ltd (hereinafter referred to as “Noticee/Swift”) entered into structured trade to give exit to certain entities who had given exist to Retail allottees and Qualified Institutional buyers (QIB) which created artificial volume in the scrip of TPL, leading to false and misleading appearance of trading in the securities market. Based on the findings of the investigation, SEBI initiated Adjudication Proceedings against the Noticee under Sections 15HA and 15HB of the SEBI Act for the alleged violations committed by the Noticee under Section 12 A of SEBI Act read with Regulation 3(a), 3(b), 3(c), 3(d) and 4(1), 4(2)(a), 4(2)(b), 4(2)(e) of SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003 (hereinafter referred to as "PFUTP Regulations").

Adjudication Order w.r.t Swift Tie Up Pvt. Ltd. in the matter of IPO of Tijaria Polypipes Ltd. Page 3 | 18 the instant matter. The proceeding is therefore been carried forward where they had been left off by the previous AO and an opportunity of personal hearing was granted as detailed hereinafter.

Adjudication Order w.r.t Swift Tie Up Pvt. Ltd. in the matter of IPO of Tijaria Polypipes Ltd. Page 4 | 18 investigation revealed that a total of 1455 and 733 retail allottees, who were allotted the maximum 2,757 shares in the retail category, had sold their entire allotment on NSE and BSE on the first day of listing during the period 9:51 am to 10 am. It is noted that shares sold by retail allottees in BSE and NSE were bought primarily by Pinac Stock Brokers Pvt. Ltd. (hereinafter referred to as ‘Pinac’) who bought 2,48,853 and 13,866,637 shares on BSE and NSE respectively from the retail allottees and by Lopa Bhavnagari (hereinafter referred to as ‘Lopa’) who bought 86,701 shares on BSE from the retail allottees.

Source: SecMarx — sebi:Order/GR/KG/2021-22/12041. 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.