sebi:SD/AO/65/2009
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Facts / Headnote
Noticee held liable for PFUTP violations and monetary penalty imposed
Provisions invoked
- s. 15
- s. 15H
- s. 15J
Regulations
- Reg. 4
- Reg. 3
- Reg. 4(1)
Parties
- Jayesh Waghela
Holding
The Adjudicating Officer held that Shri Jayesh Waghela violated Regulations 4(1) and 4(2)(a), (b), (e) and (g) of the PFUTP Regulations, 2003 by entering into non-genuine synchronized and structured trades creating misleading appearance and artificial volume in MCL. He was held liable under Section 15HA of the SEBI Act and a monetary penalty of Rs. 15,00,000 was imposed.
Full text
Page 2 of 21 are directors. There are 42 such entities who are allegedly involved in the manipulation of the scrip of MCL, out of which 33 entities were allegedly found to be connected to each other. These entities who transacted in the shares of MCL entered into synchronized and structured deals that led to creation of misleading appearance of trading in the scrip of MCL and artificial volumes in the scrip and distorted market equilibrium leading to sudden spurt in the volume and price of the scrip.
Page 3 of 21 8. In the interest of principles of natural justice and in order to conduct an inquiry as per Rule 4 (3) of the Rules, the Noticee was granted an opportunity of personal hearing on January 12, 2009 vide notice of hearing dated December 24, 2008 at the SEBI Head Office situated at Bandra Kurla Complex, Mumbai. The noticee failed to appear for the same inspite of receipt of the Notice of Hearing.
Page 4 of 21 (b) dealing in a security not intended to effect transfer of beneficial ownership but intended to operate only as a device to inflate, depress or cause fluctuations in the price of such security for wrongful gain or avoidance of loss; --------------------------------------------------------------------------------------------- (e) any act or omission amounting to manipulation of the price of security; --------------------------------------------------------------------------------------------- (g) entering into a transaction in securities without the intention of performing it or without intention of change of ownership of such security.
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Source: SecMarx — sebi:SD/AO/65/2009. 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.