sebi:Order/KS/VB/2019-20/3427

SEBI · SEBI · 2017-09-28 · K Saravan, Chief General Manager & Adjudicating Officer

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Facts / Headnote

Show Cause Notice dated January 15, 2018 disposed of without imposition of any penalty under section 15HA of SEBI Act

Provisions invoked

• s. 15
• s. 15H
• s. 15J
• s. 15(1)

Regulations

• Reg. 3
• Reg. 4(1)
• Reg. 3(a)

Parties

• Nirshilp Securities Ltd

Holding

The Adjudicating Officer held that the alleged violations of Regulations 3(a), (b), (c), (d), 4(1), 4(2)(a) and (e) of the PFUTP Regulations, 2003 by Nirshilp Securities Ltd in the scrip of Winsome Yarns Limited (WYL) during February 22, 2013 to April 29, 2013 were not established, and the Show Cause Notice was disposed of without any penalty.

Full text

Page 2 of 20 period (Rs.) during the period Pre-Invg. 30/06/2010 to 29/09/2010 Price 1.9 2.36 1.83 (12/07/2010) 2.99 (13/09/2010) 2.28 Volume 32260 299441 15209 (02/09/2010) 2454240 (23/07/2010) 357577 Investigation 30/09/2010 to 18/05/2011 (price rise) Price 2.41 4.87 1.9 (11/02/2011) 4.99 (18/05/2011) 2.69 Volume 47882 429217 302 (07/02/2011) 1508110 (14/01/2011) 150954 Investigation 19/05/2011 to 03/08/2011 (price fall) Price 4.98 3.43 3.18 (27/07/2011) 5.11 (23/05/2011) 3.79 Volume 280375 10645 5216 (23/06/2011) 350359 (27/06/2011) 111722 Investigation 25/08/2011 to 18/11/2011 (price fall) Price 36 17.5 17.5 (18/11/2011) 36 (25/08/2011) 24.58 Volume 1699 288 1 (26/10/2011) 70913 (22/09/2011) 778172 Investigation 21/11/2011 to 20/03/2012 (price rise) Price 18.35 31.95 17.25 (12/12/2011) 33.2 (15/03/2012) 23.76 Volume 21583 40200 1 (30/11/2011) 83229 (28/12/2011) 811891 Investigation 21/03/2012 to 21/02/2013 (price fall) Price 31 16 14.35 (11/01/2013) 32.5 (23/03/2012) 20.22 Volume 24661 401 1 (08/02/2013) 251999 (14/12/2012) 18158 Investigation 22/02/2013 to 29/04/2013 (price rise) Price 15.25 29.2 14.25 (08/03/2013) 29.3 (29/04/2013) 19.15 Volume 1624 259837 146 (15/04/2013) 259837 (29/04/2013) 35533 Investigation 30/04/2013 to 28/02/2015 (price fall) Price 29.9 1.49 0.99 (17/12/2014) 30 (30/04/2013) 8.93 Volume 27198 50419 305 (11/05/2013) 2400255 (14/01/2014) 102522 Post Investigation 01/03/2015 to 29/05/2015 Price 1.54 1 0.9 (27/05/2015) 1.55 (09/03/2015) 1.16 Volume 3

Page 3 of 20 3. SEBI observed from investigation that Nirshilp Securities Ltd (hereinafter referred to as ‘Nirshilp’ / ‘Noticee’) was not acting as genuine seller in the scrip of WYL and had no bona fide intention to sell as they released very small quantity of shares in each transaction despite sufficient buy orders being available in the market. In view of the same, SEBI initiated adjudication proceedings against the Noticee under Section 15HA of the Securities and Exchange Board of India Act, 1992 (hereinafter referred to as ‘SEBI Act’) for the violation of Regulations 3 (a), (b), (c), (d), 4 (1), 4 (2) (a) and 4 (2) (e) of SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 2003 (hereinafter referred to as ‘PFUTP Regulations’). APPOINTMENT OF ADJUDICATING OFFICER

Page 4 of 20 Patch 6 - Price rise patch from February 22, 2013 to April 29, 2013 (BSE) During this patch, the scrip price opened at Rs.15.2 and closed at Rs. 29.20. The net rise in the scrip price is Rs. 14. In order to ascertain whether the sellers have contributed to the price rise during Patch 6 of the investigation period in BSE, an

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