sebi:Order/MC/HP/2021-22/12394-12400
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Facts / Headnote
Allegations of violation of Section 12A(a),(b),(c) of SEBI Act read with Regulation 3(a),(b),(c),(d) and Regulation 4(1), 4(2)(a),(e) of PFUTP Regulations found established against Noticees 1 to 7; penalty of Rs.10,00,000/- imposed jointly and severally under Section 15HA of SEBI Act.
Provisions invoked
- s. 15
- s. 12A
- s. 12
- s. 15H
- s. 15J
Regulations
- Reg. 3
- Reg. 4
- Reg. 4(1)
- Reg. 3(a)
Parties
- J M S Financial Services Ltd. (Noticee 1)
- Mindex Capital Market Private Limited (Formerly known as MKN Equity Brokers Pvt. Ltd.) (Noticee 2)
- M K N Commodity Brokers Private Limited (Noticee 3)
- S K Aggarwal HUF (Noticee 4)
- M K Aggarwal HUF (Noticee 5)
- K K Aggarwal HUF (Noticee 6)
- Nitin Aggarwal HUF (Noticee 7)
Holding
The Noticees were found to have violated Section 12A(a),(b),(c) of the SEBI Act read with Regulation 3(a),(b),(c),(d) and Regulation 4(1), 4(2)(a),(e) of the PFUTP Regulations by providing liquidity and counterparties that enabled eight other entities (already found to have manipulated the scrip in an order dated February 26, 2021) to continuously buy at increasing prices, thereby contributing to price manipulation in the scrip of PMC Fincorp Limited.
Full text
Adjudication Order in the matter of PMC Fincorp Limited Page 2 of 52 (Noticee 1), Mindex Capital Market Private Limited (Formerly known as MKN Equity Brokers Pvt. Ltd.) (Noticee 2), M K N Commodity Brokers Private Limited (Noticee 3), S K Aggarwal HUF (Noticee 4), M K Aggarwal HUF (Noticee 5), K K Aggarwal HUF (Noticee 6) and Nitin Aggarwal HUF (Noticee 7) for the alleged violations of Section 12A(a),(b),(c) of SEBI Act read with Regulation 3(a),(b),(c),(d) and Regulations 4(1), 4(2) (a), (e) of SEBI (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 PMC Fincorp Limited (PMC/Company/Scrip) for the period from March 29, 2012 to March 31, 2015 (IP/investigation period). The Noticees 1 to 7 are collectively referred to as 'Noticees/You'.
Adjudication Order in the matter of PMC Fincorp Limited Page 3 of 52 4. The allegations levelled against the Noticees in the SCN are summarized as below:
Adjudication Order in the matter of PMC Fincorp Limited Page 4 of 52 Period Duration Opening Price/ vol on 1st day of period(Rs.) Closing Price/ Vol on last day of period(Rs.) Low Price/Vol during the Period(Rs.) High Price/Vol during the Period(Rs.) Avg no of shares traded daily during the period Pre- Investig ation 13/03/2012 - 28/03/2012 (*) Price (in Rs.) 355 307.95 300.50 (28/03/2012) 424 (16/03/2012) 56064 Volume 11275 109795 11275 (13/03/2012) 109795 (28/03/2012) IP Patch 1 29/03/2012- 06/02/2013 Price (in Rs.) 315 499.65 313.50 (29/03/2012) 585 (28/01/2013) 40619 Volume 67975 59563 2810 (18/05/2012) 138987 (01/01/2013)
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Source: SecMarx — sebi:Order/MC/HP/2021-22/12394-12400. 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.