sebi:Order/MC/HP/2021-22/12043-12050
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Provisions invoked
- s. 15H
- s. 15J
Regulations
- Reg. 4(1)
- Reg. 3(a)
Parties
- Pankaj Agrawal
- Aarti Agrawal
- Rukmani Devi
- Pankaj Kumar Agrawal & Son HUF
- Mool chand and Sons HUF
- Sushila Devi
- Prabha Devi
- Ashok Kumar Sons HUF
Holding
The material on record did not bring out whether the trades by the Noticees caused any unusual spike in volumes in the scrip of Ram Minerals and Chemicals Ltd.
Full text
Adjudication Order in the matter of Ram Minerals and Chemicals Limited Page 2 of 28 BACKGROUND 1. Securities and Exchange Board of India (hereinafter be referred to as, 'SEBI') initiated adjudication proceedings under Section 15HA of the Securities and Exchange Board of India Act, 1992 (hereinafter referred to as 'SEBI Act'), against Pankaj Agrawal (Noticee 1), Aarti Agrawal (Noticee 2), Rukmani Devi (Noticee 3), Pankaj Kumar Agrawal & Son HUF (Noticee 4), Mool chand and Sons HUF (Noticee 5), Sushila Devi (Noticee 6), Prabha Devi (Noticee 7) and Ashok Kumar Sons HUF (Noticee 8) for the alleged violation of Regulation 3(a),(b),(c),(d) and Regulation 4(1), 4(2) (a) of Securities and Exchange Board of India (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 2003 (hereinafter referred to as 'PFUTP Regulations') pursuant to investigation in the scrip of Ram Minerals and Chemicals Ltd. (hereinafter referred to as 'RMCL/Company/Scrip') for the period from March 07, 2017 to April 17, 2017 (IP/investigation period). The Noticees 1 to 8 are collectively referred to as 'Noticees/You'.
Adjudication Order in the matter of Ram Minerals and Chemicals Limited Page 3 of 28 inquiry should not be held and penalty not be imposed against Noticees in terms of Section 15HA of SEBI Act for the aforesaid alleged violations.
Adjudication Order in the matter of Ram Minerals and Chemicals Limited Page 4 of 28 8. It was observed that RMCL has made preferential allotment of 86,48,100 equity shares of Rs.1/- each issued at a premium of Rs.22.00/- per share to 181 non- promoter entities on September 12, 2014. The trading approval for these shares allotted on preferential basis was given by BSE on July 17, 2015 and these shares were under lock-in up to July 27, 2016. From the trade log and order log it was observed that Fancos Trademart Private Limited, Shivrudra Infortech solutions Private limited, Asian Bulls Capital Pvt. Ltd. (ABCPL) (formerly known as Asia Bulls Green Energy Private Limited) were connected to RMCL through its directors and these companies were facilitating in providing an exit to some of the preferential allottees. In this regard, the following was observed in respect of the trading of the aforesaid entities:
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Source: SecMarx — sebi:Order/MC/HP/2021-22/12043-12050. 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.