sebi:Order/SBM/JR/2021-22/12368-12369
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Facts / Headnote
Penalty imposed on Noticees for violation of PFUTP Regulations
Provisions invoked
- s. 15
- s. 15H
- s. 15J
Regulations
- Reg. 3
- Reg. 4(1)
- Reg. 3(a)
Parties
- Function Financial Consultants P Ltd.
- Helpful Investment Advisory P Ltd.
Holding
The Noticees violated Regulations 3(a), (b), (c), (d), 4(1) and 4(2)(e) of the PFUTP Regulations by repeatedly placing buy orders above the Last Traded Price in the scrip of Mystic Electronics Ltd., and a total penalty of Rs. 7,00,000 was imposed on them jointly and severally under section 15HA of the SEBI Act.
Full text
Page 2 of 17 In the matter of Mystic Electronics Ltd. no. 2”) have traded extensively in the scrip of MEL during the investigation period and for the purpose of the present proceeding, Noticee nos 1 & 2 are hereinafter also collectively referred to as ‘Noticees’. It is alleged that the Noticees have consistently placed the orders in the scrip of MEL at prices above the LTP, which also caused substantial increase in the scrip price of MEL during the investigation period.
Page 3 of 17 In the matter of Mystic Electronics Ltd. was appointed as the Adjudicating Officer in the matter, vide communique dated November 3, 2020.
Page 4 of 17 In the matter of Mystic Electronics Ltd. ‘operators’, and the ‘connected entities’, including the Noticees, by allotting shares on preferential allotment basis to various entities. It is observed that MEL had made a preferential allotment of 92,30,000 shares of Rs. 10 each to 48 entities (who were not the promoters of MEL), on June 07, 2013, at a price of Rs 60.74/- per equity share and raised an amount of Rs. 56.06 crore. The shares issued through the above preferential allotment was under lock-in period till June 06, 2014 and post the lock-in period, some of the allottees in the preferential allotment sold the shares of the company and made profit. As per the
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Source: SecMarx — sebi:Order/SBM/JR/2021-22/12368-12369. 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.