sebi:PM/AB/2020-21/8804

SEBI · SEBI · 2017-10-10 · Prasanta Mahapatra, Adjudicating Officer

This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.

Facts / Headnote

Violation established; penalty of Rs.8,00,000 imposed under Section 15HA of SEBI Act, 1992

Provisions invoked

• s. 15
• s. 19
• s. 15H
• s. 15J

Regulations

• Reg. 3
• Reg. 4
• Reg. 4(1)
• Reg. 3(a)

Parties

• Tanuj Khandelwal

Holding

The Noticee violated Regulations 3(a), (b), (c), (d), 4(1), 4(2)(a) and (e) of the SEBI (PFUTP) Regulations, 2003 by manipulative LTP-based trading in Malabar Trading Company Ltd. during Patch-1, and is liable under Section 15HA of the SEBI Act, 1992. A monetary penalty of Rs.8,00,000 was imposed.

Full text

Adjudication Order in respect of Tanuj Khandelwal in the matter of Malabar Trading Company Ltd., Page 2 of 21 Period Dates Opening Price /volume on first day of the period(₹) Closing price /volume on last day of the period(₹) Low price/volume during the period (₹) High Price/volume during the period (₹) Avg. no. of (shares) traded daily during the period Patch 1 of IP (Price Rise) (26/12/2011 to 29/05/2014) Price 5.15 (26/12/2011) 126.5 (29/05/2014) 5.15 (26/12/2011) 126.5 (29/05/2014) 1341 (211857) Vol 1 (26/12/2011) 90000 (29/05/2014) 1 (26/12/2011) 90000 (29/05/2014) Patch 2 of IP (Price Fall) (30/05/2014 to 17/06/2014) Price 120.2 (30/05/2014) 65.15 (17/06/2014) 65.15 (17/06/2014) 120.2 (30/05/2014) 29187 (379430) Vol 10660 (30/05/2014) 4 (17/06/2014) 4 (17/06/2014) 81030 (09/06/2014) Patch 3 of IP (Price Rise) (18/06/2014 to 12/11/2014) Price 68.4 (18/06/2014) 345 (12/11/2014) 68.4 (18/06/2014) 346.95 (11/11/2014) 18964 (1706728) Vol 4 (18/06/2014) 501 (12/11/2014) 1 (02/07/2014) 513450 (18/08/2014) Patch 4 of IP (Price Fall) (13/11/2014 to 30/06/2015) Price 351.9 (13/11/2014) 13.5 (30/06/2015) 13.5 (30/06/2015) 351.9 (13/11/2014) 7326 (1003696) Vol 5395 (13/11/2014) 106 (30/06/2015) 1 (18/11/2014) 59512 (22/05/2015) After Investigation Period (01/07/2015 to 30/09/2015) Price 13.5 (01/07/2015) 4.42 (30/09/2015) 4.13 (23/09/2015) 14.14 (06/07/2015) 3332 (186594) Vol 72 (01/07/2015) 24150 (30/09/2015) 1 (07/09/2015) 53786 (12/08/2015)

Adjudication Order in respect of Tanuj Khandelwal in the matter of Malabar Trading Company Ltd., Page 3 of 21 dated October 10, 2017, under Section 19 of the SEBI Act read with Section15- I of the SEBI Act 1992 and Rule 3 of SEBI (Procedure for Holding Inquiry and Imposing Penalties) Rules, 1995 (hereinafter referred to as “SEBI Adjudication Rules”) to inquire into and adjudge under Section 15 HA of the SEBI Act 1992, for the violation alleged to have been committed by the Noticee.

Adjudication Order in respect of Tanuj Khandelwal in the matter of Malabar Trading Company Ltd., Page 4 of 21 8. Vide email dated October 12, 2018, the Noticee was provided with order log and trade log of MTCL and was also informed that the relevant portion of investigation report has already been included in the SCN and that copy of the same cannot be provided. Further, the Noticee was informed that other documents sought by him were either not relied upon or not available and accordingly was advised to furnish his reply to the SCN at the earliest.

Source: SecMarx — sebi:PM/AB/2020-21/8804. 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.