sebi:PKK/AO/186/2010
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Facts / Headnote
Violation established; penalty of Rs 1,00,000 imposed on the Noticee
Provisions invoked
- s. 15
- s. 15H
- s. 15J
Regulations
- Reg. 3
- Reg. 4(1)
Parties
- Shri Amar Yuvraj Adhav
Holding
The Noticee violated Regulations 4(1), 4(2)(a) and 4(2)(e) of the PFUTP Regulations, 2003 in dealing in the scrip of MCL. A monetary penalty of Rs 1,00,000 under Section 15HA of the SEBI Act, 1992 was imposed on the Noticee.
Full text
Page 2 of 10 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 Amar Yuvraj Adhav (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 10 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 10 Services Ltd. to the extent of 1,38,917 shares. He shared common telephone number with various connected entities who had also traded fraudulently in the scrip of MCL.
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Source: SecMarx — sebi:PKK/AO/186/2010. 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.