sebi:Order/KS/AE/2021-22/15531-15539

SEBI · SEBI · 2018-06-29 · K Saravanan, Adjudicating Officer

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Facts / Headnote

Penalty imposed on Noticees for violation of PFUTP Regulations; penalty of Rs. 2,00,000 payable jointly and severally by Noticees 1 and 2 (full penalty structure partially visible in text)

Provisions invoked

• s. 15
• s. 12A
• s. 15H
• s. 15J
• s. 15F
• s. 28A
• s. 24

Regulations

• Reg. 4
• Reg. 3
• Reg. 10
• Reg. 3(a)
• Reg. 20

Holding

The Adjudicating Officer held that the Noticees violated Regulations 3(a)-(d), 4(1), and 4(2)(a), (b), (e), (g) of the PFUTP Regulations by engaging in synchronized trades, reversal trades, trading among themselves, and contributing to artificial price rise in the scrip of Kavveri, and imposed penalties under Section 15HA of the SEBI Act.

Full text

Page 2 of 122 of Kavveri are listed on the National Stock Exchange (hereinafter referred to as ‘NSE’) and the Bombay Stock Exchange (hereinafter referred to as ‘BSE’).

Page 3 of 122 4. SEBI observed from investigation that the trades by the Noticees created artificial volume in the scrip of Kavveri leading to false and misleading appearance of trading in the said scrip and also contributed to artificial price rise in the said scrip, which were deemed to be fraudulent. In view of the same, SEBI initiated adjudication proceedings against the Noticees 3 to 9 (viz. Sajjan, Sunita, Govind, Dhirajlal, Sagar, Ashik, and Babubhai) under Section 15HA of the Securities and Exchange Board of India Act, 1992 (hereinafter referred to as ‘SEBI Act’) for the alleged violation of Regulations 3 (a), (b), (c), (d), 4 (1), 4 (2) (a) and (g) of SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 2003 (hereinafter referred to as ‘PFUTP Regulations’). Further, adjudication proceedings were initiated against Noticee 1 and 2 (viz. Antala and Vishu) under Section 15HA of SEBI Act for the alleged violation of Regulations 3 (a), (b), (c), (d), 4 (1), 4 (2) (a), (b), (e) and (g) of PFUTP regulations. Adjudication Order dated June 29, 2018 was passed in respect of Noticee 1 and 2 whereby penalty was imposed on the said Noticees. Further, Adjudication Order dated June 29, 2018 was passed in respect of Noticee 3 to 9 whereby penalty was imposed on the said Noticees. The Noticees preferred appeal against the aforesaid Adjudication Orders in 0 100000 200000 300000 400000 500000 600000 700000 800000 0 20 40 60 80 100 120 14

Page 4 of 122 Hon’ble Securities Appellate Tribunal (SAT). Vide Order dated February 19, 2020, Hon’ble SAT directed as follows – “The appeals are allowed and the matters are remitted back to the AO to decide the matters afresh after supplying the relevant material, namely, trade logs, order logs, investigation report, etc. The AO shall pass a fresh

Source: SecMarx — sebi:Order/KS/AE/2021-22/15531-15539. 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.