sebi:Order/GR/RK/2021-22/12929-12935

SEBI · SEBI · 2013-10-03 · 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

Violations established; monetary penalty imposed on all seven noticees

Provisions invoked

Regulations

Parties

Holding

All seven Noticees violated Section 2(i) read with Sections 13, 16 and 18 of the SCR Act, 1956 read with SEBI Notification dated October 03, 2013 by entering into off-market transfers of Videocon Industries Limited shares without consideration. Each Noticee was held liable under Section 23H of the SCR Act, 1956 and penalized Rs. 1,00,000.

Full text

Adjudication Order in respect of 7 entities in the matter of M/s Videocon Industries Limited Page 2 | 18 alleging price fall during the period of one year. Subsequently, National Stock Exchange (‘NSE’) was requested by SEBI to carry out examination in the scrip of VIL on the complaint alleging price fall, for the period April 03, 2017 to September 29, 2017. Based on the report of NSE, SEBI started an investigation for the period of April 03, 2017 to September 29, 2017 (hereinafter referred to as “investigation period/IP”) in the scrip of VIL for the possibility of insider trading and volume manipulation by certain entities. During the investigation, SEBI had observed prima facie violations of Section 2(i) of Securities Contracts (Regulation) Act, 1956 (hereinafter referred to as “SCR Act, 1956”) read with Section 13, 16 and 18 of SCR Act, 1956 read with SEBI Notification dated October 03, 2013 by the Noticees.

Adjudication Order in respect of 7 entities in the matter of M/s Videocon Industries Limited Page 3 | 18 4. Summary of allegations made against the Noticees in the SCN are reproduced below:

Adjudication Order in respect of 7 entities in the matter of M/s Videocon Industries Limited Page 4 | 18 Appliances Pvt Ltd. Hence, Acuity Merchants Private Limited had entered into off market transactions without receipt/consideration which is in contravention of the provisions related to spot delivery contract. Therefore, it is alleged that Acuity Merchants Private Limited thereby allegedly violated Section 2(i) of SC(R)A, 1956 read with Section 13,16 and 18 of SC(R)A, 1956 read with SEBI Notification dated October 03, 2013. c) Acuity Merchants Pvt Ltd (‘AMPL’) had further transferred shares of VIL through off market to some entities. d) AMPL had submitted the following transactions which were made during the IP: Name of the entity PAN of the entity No. of shares transferred Coastal Fertilizers Limited (CFL) AAACH6567J 591300 Richhold Properties Pvt Ltd (RPPL) AABCP7794A 10000 Kaberi Goods Pvt Ltd (KGPL) AACCK7867L 184646 Invorex Vincom Pvt Ltd (IVPL) AACCI3168A 117000 Akansha Commodities Pvt Ltd (ACPL) AAGCA8604B 216505 Godavari Commercial Services Pvt Ltd (GCSPL) AABCG1461B 331241

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Source: SecMarx — sebi:Order/GR/RK/2021-22/12929-12935. 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.