sebi:SD/AO/79/2009

SEBI · SEBI · 2007-06-19 · Sandeep Deore, 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 found; monetary penalty of Rs. 10 lakh imposed on the Noticee

Provisions invoked

• s. 15
• s. 15H
• s. 15J

Regulations

• Reg. 4
• Reg. 3
• Reg. 4(1)

Parties

• Vijay Suryavanshi

Holding

The Noticee violated Regulations 4(1), 4(2)(a), (b), (e) and (g) of the PFUTP Regulations, 2003 by entering into non-genuine synchronized and structured trades that created misleading appearance of trading and artificial volumes in the scrip of MCL, and is liable for monetary penalty under Section 15HA of the SEBI Act, 1992. A monetary penalty of Rs. 10 lakh was imposed on Shri Vijay Suryavanshi.

Full text

Page 2 of 12 trades or association through companies of which the individuals 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 12 7. The Noticee did not reply to the said SCN till date neither did he intimate the reasons for his inability to file the reply to the same.

Page 4 of 12 12. Regulation 4 (2) reads thus, ‘Dealing in securities shall be deemed to be a fraudulent or an unfair trade practice if it involves fraud and may include all or any of the following, namely:-

Source: SecMarx — sebi:SD/AO/79/2009. 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.