sebi:SD/AO/79/2011
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Facts / Headnote
Violation found; monetary penalty imposed
Provisions invoked
- s. 15
- s. 15H
- s. 15J
Regulations
- Reg. 4
- Reg. 3
Parties
- Shri Rajanikant B. Mishra
Holding
The Noticee violated Regulations 4(1), 4(2)(a), (b), (e) and (g) of the PFUTP Regulations by executing fictitious and synchronized trades in the scrip of AEL which created false appearance of trading and price manipulation, and is liable to a monetary penalty of Rs. 3,00,000 under Section 15HA of the Act.
Full text
Page 2 of 8 2. The role of the main brokers and clients who had traded heavily during the period under investigation in the scrip of AEL was scrutinized. The Investigations revealed that certain entities, including Shri Rajanikant B. Mishra (hereinafter referred to as the ‘Noticee’), transacted in the shares of AEL in a fraudulent manner that led to creation of artificial volume and a false market.
Page 3 of 8 6. The SCN was sent by Registered Post Acknowledgment Due and the same was duly delivered. The Noticee, vide letter received by SEBI on July 17, 2008, replied to the SCN and denied the charges against him. He also requested for the details of his trades. A copy of the trade and order logs of the trades of the Noticee was sent to him vide letter dated August 21, 2008.
Page 4 of 8 10. Before moving forward, it will be appropriate to refer to the relevant provisions of PFUTP Regulations which read as under:-
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Source: SecMarx — sebi:SD/AO/79/2011. 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.