sebi:Order/SM/MG/2020-21/10480
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Facts / Headnote
SCN dated November 16, 2017 disposed of with no further inquiry
Provisions invoked
- s. 11
Regulations
- Reg. 3(a)
Holding
The adjudication proceedings initiated vide SCN dated November 16, 2017 are disposed of with no further inquiry under Rule 4(3) of the Adjudication Rules.
Full text
Page 2 of 3 16, 2017, (hereinafter referred to as ‘SCN’) was issued to the Noticee. The major observations and allegations against the Noticee in the aforesaid SCN are given hereunder in brief:
Page 3 of 3 “……. i. SEBI shall not initiate enforcement action against the applicants for the said defaults; ii. this order disposes of the enforcement proceedings initiated by SEBI under Section 11 and 11B of the SEBI Act, 1992 vide Show Cause Notice bearing No. EFD/DRA-4/SD/AS/ 16942/29/2017 dated July 17, 2017 and adjudication proceedings initiated vide Show Cause Notice bearing No. EAD/BJD/MAS/28497/87/2017 dated November 16, 2017 in respect of DCB; …. …”
a) It was observed that the price of the scrip opened at Rs. 63.00 at BSE registering a high of Rs. 615.00 and closed at Rs. 88.80, during investigation period. b) It was observed during investigation that a group of entities connected to the company (hereinafter referred to as ‘Connected Group’), including the Noticee, was trading in the scrip during the investigation period. c) It was further observed that the Connected Group had indulged in price manipulation by trading among themselves and were counterparties to the sale of shares by allottees, who had been allotted shares of SAL pursuant to amalgamation of Santoshima Tradelinks Ltd and Conart Traders Ltd with SAL, at artificially inflated price. d) SEBI observed that the Connected Group was acting in concert for price manipulation and had assisted the allottees to offload the shares of the scrip at manipulated price. e) It was, therefore, alleged that by indulging in manipulation of the price of the scrip, the Noticee violated Regulations 3(a), (b), (c), (d), 4(1), 4(2)(a) and (e) of PFUTP Regulations.
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Source: SecMarx — sebi:Order/SM/MG/2020-21/10480. 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.