sebi:PKK/AO/266/2010
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Facts / Headnote
Penalty imposed on Noticee for violation of PFUTP Regulations
Provisions invoked
- s. 15
- s. 15H
- s. 15J
Regulations
- Reg. 4
- Reg. 3
Parties
- Ramniklal Patel
Holding
The Noticee, Ramniklal Patel, violated Regulations 4(1), 4(2)(a) and 4(2)(e) of the SEBI (PFUTP) Regulations, 2003 by trading among connected clients and creating artificial volume in an illiquid scrip, thereby influencing its price, and a monetary penalty of Rs. 1,00,000/- was imposed under Section 15HA of the SEBI Act, 1992.
Full text
Page 2 of 11 129.50 (opening price on January 13, 2005), 42% rise. In the third patch of price fall, from January 31, 2005 to February 25, 2005 (hereinafter referred to as the ‘third patch of price fall’), the price of the scrip has decreased from Rs. 140 to Rs. 91.95. Secondly, the major clients dealing in the scrip were connected/related clients viz., Ramniklal Patel, Vikas Narnavar, Rameshchandra Jain, Amul Seth and Jayesh Shah who have dealt through four members viz., Pilot Credit Capital Ltd., Adolf Pinto, Pawan J Choudhri, M/s. Harikishan Hiralal, and have purchased 12,916 shares and sold 14,225 shares accounting for around 58% of market purchases and 64% of market sales during entire period under examination.
Page 3 of 11 4. In view of the findings of the Investigation as given above, SEBI has initiated adjudication proceedings under the SEBI Act, against the Noticee for allegedly violating the provisions of Regulations 4 (1), 4 (2) (a) & (e) of the SEBI (PFUTP) Regulations.
Page 4 of 11 7. The Noticee did not reply to the SCN and therefore, on considering the facts of the case as available on record, it was decided to conduct an inquiry in the matter. Accordingly, the undersigned had granted an opportunity of personal hearing on October 25, 2010 vide letter dated October 7, 2010. The hearing notice was duly served on the Noticee by affixture on October 11, 2010. The Noticee did not appear before me for the personal hearing.
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Source: SecMarx — sebi:PKK/AO/266/2010. 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.