sebi:Order/GR/KG/2021-22/12298-12300

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

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Facts / Headnote

Adjudication proceedings disposed of without imposition of penalty

Provisions invoked

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

Regulations

• Reg. 3
• Reg. 3(a)

Parties

• Shri Pranav A. Sheth
• Shri Sujal J. Zaveri
• Shri Rupak K. Shah

Holding

The allegations against the directors of Parklight for violation of Section 12A of SEBI Act and Regulations 3(a),(b),(c)&(d), 4(1), 4(2)(a) of PFUTP Regulations were not established, and therefore the Noticees are not liable for monetary penalty under Sections 15HA and 15HB of the SEBI Act.

Full text

Adjudication Order in the matter of IPO of Tijaria Polypipes Ltd. Page 2 | 14 2. Securities and Exchange Board of India (hereinafter referred to as "SEBI") conducted an investigation in respect of trading in the scrip of TPL, upon observing a steep fall in the share price on the first day of listing i.e. October 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 Parklight Securities Ltd. (‘Parklight’) funded three entities viz. Lopa Saumil Bhavnagari (‘Lopa’), Pinac Stock Brokers Pvt. Ltd. (‘Pinac’), who had provided exit to certain QIBs and/or retail allottees, 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 directors of Parklight viz. Shri Pranav A. Sheth, Shri Sujal J. Zaveri and Shri Rupak K. Shah (hereinafter referred to as “Noticees”) under Sections 15HA and 15HB of the SEBI Act for the alleged violations committed by the Noticees under Section 12 A of SEBI Act read with Regulation 3(a), 3(b), 3(c), 3(d), 4(1) and 4(2)(a) of SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003 (hereinafter referred to as "PFUTP Regulations").

Adjudication Order in the matter of IPO of Tijaria Polypipes Ltd. Page 3 | 14 Subsequently, Shri. Suresh B Menon was appointed as the Adjudicating Officer in the said matter in the place of Shri D Ravikumar. Thereafter, vide order dated April 9, 2019 the undersigned has been appointed as the Adjudicating Officer in the instant matter. The proceeding is therefore being 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 in the matter of IPO of Tijaria Polypipes Ltd. Page 4 | 14 b) It is alleged that there was a steep fall in the scrip price of the Company on the first day of its listing on both BSE and NSE. Investigation was therefore conducted to examine the steep fall in the scrip price of the Company on the first day of its listing on the Stock Exchanges. The Investigation revealed that a total of 1,455 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 time 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 who bought 2,48,853 and 13,86,637 shares on BSE and NSE respectively from the retail allottees, and Lopa who bought 86,701 shares on BSE from the retail allottees.

Source: SecMarx — sebi:Order/GR/KG/2021-22/12298-12300. 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.