sebi:PKK/AO/132/2010
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 violation and penalty of Rs. 1,00,000 imposed
Provisions invoked
- s. 15
- s. 15H
- s. 15J
Regulations
- Reg. 3
- Reg. 4(1)
Parties
- Zenith Estates Ltd.
Holding
The Noticee violated Regulations 4(1), 4(2)(a) and 4(2)(e) of the PFUTP Regulations by dealing in the scrip of MCL in a fraudulent manner and is liable to penalty under Section 15HA of the SEBI Act. A monetary penalty of Rs. 1,00,000 was imposed on the Noticee.
Full text
Page 2 of 9 connected clients who in turn offloaded the same in the market. Certain group of clients bought and sold shares of MCL substantially among themselves during the investigation period, which created artificial volume and affected the price of the scrip. Connection has been found among these clients either through common directors (in case of companies) or common address. Analysis of bank statements also revealed that there were fund transfers among some of these clients. One such group comprises of nine clients namely Vintel Securities Pvt. Ltd., Zenith Estates Ltd., S. J. Securities Pvt. Ltd. M/s. Dhamaka Trading and Constructions Pvt. Ltd. Shri Amit Goel, Shri Ramesh Arora, Ms. Bimla Gupta. Shri Prashant Khankari and Shri Akhilesh Kamal Prasad Mishra. As mentioned Zenith Estates Pvt. Ltd (hereinafter referred to as the ‘Noticee’) was one of the connected entities involved in manipulation of the scrip of MCL in a fraudulent manner. The activities of these entities facilitated the creation of artificial volume and influenced the price of the scrip of MCL.
Page 3 of 9 ‘Adjudicating Rules’) to inquire into and adjudge under Section 15 HA of the SEBI Act, the alleged violation of the abovementioned provisions of the SEBI Act. Consequent to Mrs. Rayudu being sent on deputation, Mr. Sandeep Deore was appointed as the AO vide SEBI Order dated November 23, 2007. SEBI vide Order dated August 17, 2010 appointed the undersigned as the AO in the instant matter subsequent to the transfer of Mr. Deore to the Enforcement Department.
Page 4 of 9 of MCL. The Noticee allegedly violated the provisions of Regulations 4(1), 4(2) (a) & 4(2) (e) of the PFUTP Regulations.
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Source: SecMarx — sebi:PKK/AO/132/2010. 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.