sebi:Order/PM/AB/2020-21/7838
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Facts / Headnote
SCN dated July 11, 2018 disposed off - charges not established, no penalty imposed
Provisions invoked
- s. 12A
- s. 15H
- s. 15J
Regulations
- Reg. 3(a)
Parties
- Shri Sanjay Abar
Holding
The charges against Shri Sanjay Abar for alleged fraudulent LTP contribution in the scrip of PAL were held not established and the SCN dated July 11, 2018 was disposed off without penalty.
Full text
Page 2 of 5 SHOW CAUSE NOTICE, REPLY AND PERSONAL HEARING 4. A Show Cause Notice dated July 11, 2018 (hereinafter be referred to as the “SCN”)was issued to the Noticee under Rule 4 of the AO Rules to show cause as to why an inquiry should not be initiated and penalty be not imposed under Section 15HA of the SEBI Act for the allegations as detailed in the said SCN. 4.2. The scrip of PAL was listed on BSE on March 25, 1994, and was subsequently suspended from trading w.e.f November 9, 1998. Before the suspension of trading the scrip was last traded at Rs.12 on August 03, 1994. The suspension of trading in the securities of the scrip was revoked w.e.f June 22, 2012, however, trading in the scrip started only on March 28, 2013. The face value of equity shares of the company were split in the ratio of 10:1 i.e. one share was split into 10 shares with effect from May 17, 2013. 4.4. The price of the shares of PAL moved from ₹441 on March 28, 2013 to ₹485 on April 02, 2013. Further, the share was split from the face value of ₹10 each to ₹1 each on May 17, 2013. Thereafter, the price of the scrip touched a high of ₹100.60 on June 20, 2013. The role of entities who had contributed to the increase in Last Trade Price (hereinafter referred to as “LTP”) was examined by SEBI. Shri Sanjay Abar (hereinafter referred to as “the Noticee”) had traded in the scrip of PAL which was allegedly fraudulent in nature. Noticee’s role as Seller
Page 3 of 5 Immediately after this trade the sell order for 195 shares pending in the system was deleted by the Noticee at 09:37:20. Immediately afterwards when price of the scrip fell to ₹441, the Noticee, while holding 195 shares, placed a sell order at 09:38:15 for 85 shares at a Limit price of ₹463.00 which was matched with a buy order placed at 10:16:06 and resulted in a trade of five shares and LTP contribution of ₹22.
Page 4 of 5 f. Further, SEBI WTM has exonerated the Noticee on the same facts in the order dated November 18, 2019. CONSIDERATION OF ISSUES AND FINDINGS
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Source: SecMarx — sebi:Order/PM/AB/2020-21/7838. 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.