sebi:Order/VV/AK/2022-23/16274-16282
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Provisions invoked
- s. 15
- s. 12A
- s. 12
- s. 15H
- s. 15J
- s. 15F
- s. 28A
Regulations
- Reg. 4
- Reg. 3
- Reg. 3(a)
- Reg. 4(2)(e)
Holding
The Adjudicating Officer found that Noticees 1, 2, 3, 4, 5, 8 and 9 fraudulently traded in the scrip of Ruchi Soya during the last 30 minutes of trading on September 27, 2012, establishing an artificial higher price in the NSE cash market, which resulted in a higher settlement price for futures contracts and allowed Noticees 1 to 7 to avoid losses of Rs. 5.76 crore on their long futures positions.
Full text
Page 2 of 64 Chart – Price Volume Movement (Source: NSE Trade Log) Table – Price Movement of Ruchi Soya at NSE Cash Mkt - Sep 27, 2012 (Source: NSE Trade Log) Exchange: NSE Ope n (Rs. ) Hig h (Rs. ) Lo w (Rs. ) Clos e/LT P (Rs.) Volume (% to total Vol.) No. of trades (% to total trades) 9:00:00 to 14:59:56 73.8 0 76. 20 70. 20 70.6 5 15,42,606 (9.77) 6,327 (30.4) 15:00:00 to 15:30:00 70.6 5 88. 00 67. 05 87.4 0 1,32,72,015 (84.04) 14,003 (67.3) 15:40:00 to 15:59:59 78.65 9,77,482 (6.19) 468 (2.3)
Page 3 of 64 3. It was observed that the scrip price rose marginally to Rs. 74.10 at 10:00:00 hrs and fell thereafter to reach Rs. 70.65 at 15:00:00 hrs. During the last half an hour, the price continued to fall from Rs. 70.65 at 15:00:00 hrs to reach Rs. 69.50 at 15:10:00 hrs but increased marginally to reach Rs. 72 at 15:25:00 hrs. Thereafter, the price increased drastically (21.4% increase in 5 minutes) to reach Rs. 87.40 at 15:30:00 hrs. The Last Traded Price (hereinafter, referred to as “LTP”) of the scrip at the end of 15:30:00 was Rs. 87.40. However, the settlement price of the futures contracts (calculated based on volume weighted average traded price during 15:00:00 hrs to 15:30:00 hrs) was Rs.78.65. A total of 1,32,72,015 shares were traded during last half an hour on Sep 27, 2012 which was 84.04% of the market traded volume of the day on Sep 27, 2012.
Page 4 of 64 6. Noticee 6 and Noticee 7 did not trade in the NSE cash market during 15:00:00 hrs to 15:30:00 hrs on September 27, 2012. Noticee 6 traded in the NSE cash market on September 27, 2012 before 15:00 hrs. The remaining seven entities, namely, Noticee Nos. 1, 2, 3, 4, 5, 8 and 9 fraudulently traded and contributed to price rise in the scrip of Ruchi Soya during last 30 minutes of trading at NSE on September 27, 2012.
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Source: SecMarx — sebi:Order/VV/AK/2022-23/16274-16282. 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.