sebi:QJA/AA/IVD-2/ID24/30599/2024-25
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Facts / Headnote
Noticees held liable for front running; directed to disgorge Rs. 50,51,116/- with 12% interest and monetary penalty imposed under Section 15HA of the SEBI Act, 1992
Provisions invoked
- s. 11
- s. 19
- s. 11B
- s. 12A
- s. 15H
- s. 15J
- s. 15F
- s. 11(5)
Regulations
- Reg. 4
- Reg. 3
- Reg. 2(1)(c)
- Reg. 3(a)
- Reg. 4(2)(q)
- Reg. 2(1)(C)
Parties
- Mr. Gaurav Singhal (Noticee No. 1)
- Ms. Alka Jain (Noticee No. 2)
Holding
The Noticees were found to have indulged in front running the trades of Sapphire Intrex Limited, constituting manipulative, fraudulent and unfair trade practices in violation of Section 12A of the SEBI Act, 1992 and the PFUTP Regulations, 2003. Noticee No. 2 was directed to disgorge Rs. 50,51,116/- jointly and severally with Noticee No. 1, along with 12% interest from December 31, 2021.
Full text
Order in the matter of front running by Alka Jain (Big Client- Sapphire Intrex Limited) Page 2 of 30 SHOW CAUSE NOTICE, REPLY AND HEARING
Order in the matter of front running by Alka Jain (Big Client- Sapphire Intrex Limited) Page 3 of 30 3.2. That Noticee No. 1 used the mobile number issued in the name of Mr. Surendra Kumar Jain, father-in-law of Noticee No. 1 and father of Noticee No. 2 to open an email ID in the name of Noticee No. 2. The aforesaid email ID and mobile number were used to create and operate the bank account which was further used to create and operate a trading account in the name of Noticee No. 2. It was alleged that the aforesaid trading account was used to front run the trades of Sapphire.
Order in the matter of front running by Alka Jain (Big Client- Sapphire Intrex Limited) Page 4 of 30 9 Customer Relationship Form submitted to ICICI Bank 10 Account Opening Form with Angel Broking of Ms. Alka Jain 11 Email dated June 22, 2023 from Shyam Spectra Private Limited (ISP) 12 Email dated May 10, 2023 received from Sapphire 13 Information from ICICI Bank re Mr. Gaurav Singhal’s account held with ICICI Bank and device details 14 Reply of ISP - Atria Convergence Technologies Limited 15 Account opening form of Ms. Alka Jain with Angel Broking 16 Consolidated sheet of FR instances including the profits gained for the entire investigation period provided by NSE 17 Details of orders of both FR (Ms. Alka Jain) and Big Client (Sapphire) at NSE 18 Details of orders of both FR (Ms. Alka Jain) and Big Client (Sapphire) at BSE
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Source: SecMarx — sebi:QJA/AA/IVD-2/ID24/30599/2024-25. 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.