sebi:PKK/AO/30/2011
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Facts / Headnote
Penalty imposed on the Noticee for violation of Regulation 3(c) of PFUTP Regulations, 2003
Provisions invoked
- s. 15
- s. 15H
- s. 15J
Regulations
- Reg. 3
- Reg. 3(c)
Parties
- M/s. Swaraj Enterprise Pvt. Ltd.
Holding
The Noticee, M/s. Swaraj Enterprise Pvt. Ltd., was held to have violated Regulation 3(c) of the PFUTP Regulations, 2003 by employing a device to defraud investors in connection with dealing in securities, and a penalty of Rs. 5,00,000 was imposed under Section 15HA of the SEBI Act.
Full text
Page 2 of 9 November 01, 2004 to December 31, 2004 (hereinafter referred to as the ‘Investigation Period’). 2. At BSE, during the investigation period, the scrip opened at ` 4.00 on November 1, 2004 and touched a high of ` 5.14 on November 08, 2004, i.e. an increase of 28.5%. During the investigation period, the volume in the scrip increased sharply. It increased from 35,11,786 on November 1, 2004 to a high of 1,07,20,562 on November 24, 2004, an increase of 205%.The total traded quantity in the scrip during the period under investigation was 11, 44, 33,970 shares with an average daily volume being 26, 61,255 shares. In contrast, the average monthly volume and daily volume in the scrip SCL for a period of 6 months before the investigation period were 28,37,908 and 1,33,026 shares respectively which is approximately 20 times less than the average daily volume during the investigation period. BSE transferred the scrip from B2 group to T group with effect from December 6, 2004.
Page 3 of 9 4. In view of the above findings, SEBI initiated adjudication proceedings under the Securities and Exchange Board of India Act, 1992 (hereinafter referred to as ”SEBI Act”) against certain entities including the Noticee to inquire and adjudge the alleged violations of the provisions of Regulations 3(c) of SEBI (Prohibition of Fraudulent and Unfair Trade Practices) Regulations, 2003 (hereinafter referred to as ‘PFUTP Regulations’).
Page 4 of 9 false and non genuine corporate announcements. Noticee was thus alleged to have violated Regulation 3(c) of PFUTP Regulations.
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Source: SecMarx — sebi:PKK/AO/30/2011. 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.