sebi:Order/GR/KG/2021-22/12297

SEBI · SEBI · 2019-04-09 · 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

Allegations not established; adjudication proceedings disposed of without penalty

Provisions invoked

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

Regulations

• Reg. 3
• Reg. 3(a)

Parties

• Shri Chetan Dave

Holding

The Adjudicating Officer held that the allegations against Shri Chetan Dave for violating Section 12A of the SEBI Act and Regulations 3(a), (b), (c) & (d) and 4(1) of the PFUTP Regulations, 2003 were not established, and consequently the Noticee was not liable for any monetary penalty under Sections 15HA and 15HB of the SEBI Act.

Full text

Adjudication Order w.r.t Shri Chetan Dave in the matter of IPO of Tijaria Polypipes Ltd. Page 2 | 14 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 Shri Chetan Dave (hereinafter referred to as “Noticee/Chetan”) entered into synchronized trades to give exit to certain entities who had given exit to Retail allottees and QIBs 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) 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 Shri Chetan Dave in the matter of IPO of Tijaria Polypipes Ltd. Page 3 | 14 had been left off by the previous AO and an opportunity of personal hearing was granted as detailed hereinafter.

Adjudication Order w.r.t Shri Chetan Dave in the matter of IPO of Tijaria Polypipes Ltd. Page 4 | 14 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 BSE and NSE on the first day of listing during the period 9:51 a.m. to 10;00 am. It is noted that shares sold by retail allottees in BSE and NSE were bought primarily by Kirti Ramji Kothari (‘Kirti’) who bought 26651 and 100556 shares on BSE and NSE respectively from retail allottees.

Source: SecMarx — sebi:Order/GR/KG/2021-22/12297. 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.