sebi:Order/MC/VS/2020-21/9099-9103

SEBI · SEBI · 2019-12-13 · Maninder Cheema, 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

Show Cause Notice disposed of; no violations found, no penalty imposed

Provisions invoked

• s. 15A
• s. 15
• s. 12A
• s. 15H

Regulations

• Reg. 3
• Reg. 7
• Reg. 9
• Reg. 201
• Reg. 7(2)(a)

Parties

• Pooja Hemanshu Mehta (Noticee 1)
• Odyssey Corporation Ltd (Noticee 2)
• Naysaa Securities Ltd (Noticee 3)
• Vikram Shares Stock Broking Pvt Ltd (Noticee 4)
• Alacrity Securities Ltd (Noticee 5)

Holding

The Adjudicating Officer found that the allegations of violation of Section 12A(a), (b) and (c) of the SEBI Act, Regulations 3(a)-(d) and 4(1), 4(2)(a), (e) and (g) of the PFUTP Regulations by Noticees 1-5, Clause A(2) of the Code of Conduct for Stock Brokers by Noticees 3 and 5, and Regulation 7(2)(a) of the PIT Regulations by Noticee 1, were not established. Consequently, no penalty was imposed under Sections 15HA, 15A(b) and 15HB of the SEBI Act.

Full text

Adjudication order in respect of five entities in the matter of Alacrity Securities Ltd. 2 Securities Limited (“Noticee No. 5”), hereinafter together referred to as “the Noticees”, for the alleged violations of provisions of the SEBI Act, 1992 (“the SEBI Act”) the SEBI (Prohibition of Fraudulent and Unfair Trade Practices) Regulations, 2003 (hereinafter referred to as the “PFUTP Regulations”), SEBI (Prohibition of Insider Trading) Regulations, 2015 (hereinafter referred to as the “PIT Regulations 2015”) and Clause A (2) in the Code of Conduct for Stock Brokers as specified under Schedule II read with Regulation 9 of SEBI (Stock Brokers and Sub-Brokers) Regulations, 1992 (hereinafter referred to as the “Broker Regulations”).

Adjudication order in respect of five entities in the matter of Alacrity Securities Ltd. 3 a) SEBI examined trading activity in the scrip of Alacrity Securities Ltd. (“ASL”) for the period June 13, 2017 to March 27, 2018 (hereinafter referred to as the “investigation period” or “IP”). b) ASL was listed on BSE SME platform on August 4, 2013. The registered office of ASL is situated at 101, Haridarshan Building, Bhogilal Fadia Road, Near SVP Primary School, Kandivali (West), Mumbai, Maharashtra, 400067. ASL is a stock broker registered with SEBI and is involved in the business of Financial Services. c) ASL is listed on SME platform of BSE and hence shareholding pattern on half yearly basis was filed by it with BSE. The same is given as follows:- Category March 2017 September, 2017 March, 2018 September, 2018 No of share holder Shares held % of shares held No of share holders Shares held % of shares held No of share holder Shares held % of shares held No of share holders Shares held % of shares held Promoter 2 10495700 49.79 2 10903700 51.73 3 11471700 54.42 3 11655700 55.29 Non- Promoter 316 10584300 50.21 269 10176300 48.27 249 9808300 45.58 242 9424300 44.71 Total 318 21080000 100.00 271 21080000 100.00 252 21080000 100.00 245 21080000 100.00

Adjudication order in respect of five entities in the matter of Alacrity Securities Ltd. 4 f) It is observed from the above table that shareholding of promoter Pooja H Mehta has increased from 1,03,36,700 (49.04%) as on March 31, 2017 to 1,07,76,700 (51.12%) as on March 31, 2018. g) During the period of Investigation, the price of the scrip opened at Rs.5.00 and closed at Rs.6.00 after touching a high of Rs.11.00 on January 15, 2018 with an average volume of 27,048 shares. Total traded volume for the period of investigation was 17,04,000 shares. The scrip has traded on 63 days out of total 197 available trading days. h) On the basis of price movement of the scrip at BSE, the trading period was divided into 4 patches as follows:-

Source: SecMarx — sebi:Order/MC/VS/2020-21/9099-9103. 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.