sebi:PKK/AO/153/2010
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Facts / Headnote
Violation established; penalty of Rs. 1,00,000 imposed under Section 15HA
Provisions invoked
- s. 15
- s. 15H
- s. 15J
Regulations
- Reg. 3
- Reg. 4(1)
Parties
- Shri Abhayaraj Rampher Shukla
Holding
The Noticee violated Regulations 4(1), 4(2)(a) and 4(2)(e) of the PFUTP Regulations, 2003 by facilitating artificial volume and price rise in the scrip of MCL and is liable to monetary penalty under Section 15HA of the SEBI Act, 1992. A penalty of Rs. 1,00,000 was imposed.
Full text
Page 2 of 11 of 269% in just four months. The scrip had an average daily volume of 34, 532 shares. 2. During the investigation it was found that certain entities connected to each other acting as clients with some brokers carried out large number of trades both off market and on market in the scrip of MCL. The transfer of shares of MCL in the off market among the entities further established the linkages between them. These entities used to complete many of the market obligations by the shares received through off market transfers. They were involved in creation of artificial volume and liquidity which led to price increase to unrealistic levels as mentioned above. Investigation revealed that Shri Abhayaraj Rampher Shukla (hereinafter referred to as the ‘Noticee’) was one of the connected entities found involved in dealing in the scrip of MCL in the above manner during the investigation period.
Page 3 of 11 Appointment of Adjudicating Officer 4. In view of the above SEBI vide order dated May 10, 2007 appointed Ms. Babita Rayudu as Adjudicating Officer (AO) under Section 15 I of the SEBI Act (hereinafter referred to as the ‘SEBI Act’) read with Rule 3 of SEBI (Procedure for holding Inquiry and Imposing Penalty by Adjudicating Officer) Rules, 1995 (hereinafter referred to as the ‘Adjudicating Rules’) to inquire into and adjudge under Section 15 HA of the SEBI Act, the alleged violation by the Noticee 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,
Page 4 of 11 The Noticee was found to have traded in the scrip though his broker M/s. Vijay Bhagwandas & Co. where he bought 24,200 and sold 3,200 shares. He was also found to have executed off market transactions to the extent of 2,70,000 shares with various entities namely Rajendra Adukia, Ramasudhakaran Menon, etc. He is thus alleged to have acted together with the entities to trade fraudulently in the scrip of MCL.
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Source: SecMarx — sebi:PKK/AO/153/2010. 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.