sebi:Order/PM/VC/2020-21/9457
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Facts / Headnote
Noticee held liable for manipulation and penalty of Rs. 5,00,000 imposed
Provisions invoked
- s. 15
- s. 19
- s. 12A
- s. 15H
- s. 15J
Regulations
- Reg. 3
- Reg. 3(a)
Parties
- Gowdanakunta Shilpa
Holding
The Noticee manipulated the price of Mahavir Advanced Remedies Limited by selling minuscule quantities to establish higher LTP, thereby violating Regulations 3(a), (b), (c), (d), 4(1) and 4(2)(a) & (e) of the PFUTP Regulations and is liable for penalty under Section 15HA of the SEBI Act.
Full text
Adjudication Order in respect of Gowdanakunta Shilpa in the matter of Mahavir Advanced Remedies Limited Page 2 of 17 2. On the basis of investigation conducted by SEBI for the transactions in the scrip of MARL, it has been inter-alia alleged that, Ms. Gowdanakunta Shilpa (hereinafter referred to as ‘Noticee’) had violated the provisions of Regulations 3(a), (b), (c), (d) and 4(1), 4(2)(a) & (e) of PFUTP Regulations. APPOINTMENT OF ADJUDICATING OFFICER
Adjudication Order in respect of Gowdanakunta Shilpa in the matter of Mahavir Advanced Remedies Limited Page 3 of 17 of price movement based on the variance in quantum of trading volumes and the price movement of the scrip as below: Patches Period Price Movement Price/Volume trend From To Open High Low Close Patch-l 26/06/2013 09/04/2014 I 7.77 220.20 7.77 220.20 Price rise with low trading volumes Patch-l I 11/04/2014 14/07/2014 224.60 352.00 224.60 349.70 Price rise with high trading volumes Patch-Ill 15/07/2014 06/01//2015 351.00 374.10 150.65 150.65 Price fall with high trading volumes |
Adjudication Order in respect of Gowdanakunta Shilpa in the matter of Mahavir Advanced Remedies Limited Page 4 of 17 9. It was alleged in the Investigation that the Noticee had placed substantial number of sale orders involving very small quantity of shares. It was further observed that out of the 11 sell trades, 7 sell trades were placed for one (1) share when there were buy orders were in the range of 500-2000 shares. Further, in one trade, the sell quantity offered was in the range of 11-20 shares when the buy orders were in the range of 500-1000 shares. Therefore, it was alleged that by executing these trades, the Noticee had matched the prices of prevailing buy orders which were placed at a higher price than the last traded price (LTP) and thereby contributed to the increase in the scrip price with each of her trades. It was also observed that these 11 trades were entered into on 11 different trading days across the period and each trades resulted in establishing a higher LTP.
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Source: SecMarx — sebi:Order/PM/VC/2020-21/9457. 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.