sebi:Order/GR/RK/2021-22/12326
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Facts / Headnote
Adjudication proceedings disposed of; allegations not established, no penalty imposed
Provisions invoked
- s. 15
- s. 12A
- s. 12
- s. 15H
- s. 15J
Regulations
- Reg. 3
- Reg. 3(a)
Parties
- Divyadrishti Merchants Pvt. Ltd.
Holding
The allegations against Divyadrishti Merchants Pvt. Ltd. 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 the Noticee was held not liable for any monetary penalty under Sections 15HA and 15HB of the SEBI Act.
Full text
Adjudication Order w.r.t Divyadrishti Merchants 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 Divyadrishti Merchants Pvt. Ltd. (hereinafter referred to as “Noticee/DMPL”) entered into synchronized trades to give exit to certain 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 Divyadrishti Merchants Pvt. Ltd. in the matter of IPO of Tijaria Polypipes Ltd. Page 3 | 18 had been left off by the previous AO and an opportunity of personal hearing was granted as detailed hereinafter.
Adjudication Order w.r.t Divyadrishti Merchants Pvt. Ltd. in the matter of IPO of Tijaria Polypipes Ltd. Page 4 | 18 holdings in BSE and NSE at a premium to issue price. It is alleged that SPARROW had sold 9,74,739 shares of the company on the first day of its listing on the Stock Exchanges and SPARROW sold 5,14,739 shares on BSE and 4,60,000 shares on the NSE. It is alleged that one of the major counterparty to the trades of SPARROW on the first day of trading on BSE and NSE was DMPL. It is alleged that when SPARROW had sold the shares of the company on BSE and NSE, DMPL bought 42,980 shares on BSE and 45,210 shares on NSE respectively. The details of the buy orders of DMPL (buyer) as against the sell orders of SPARROW (seller) is mentioned as under:
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Source: SecMarx — sebi:Order/GR/RK/2021-22/12326. 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.