sebi:WTM/AB/EFD-1/DRA-2/27/2020-21
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Facts / Headnote
Directions issued to disgorge ill-gotten gains (loss avoided) collectively amounting to Rs. 5.76 crore for violation of SEBI Act, 1992 and PFUTP Regulations, 2003
Provisions invoked
- s. 11B
- s. 19
- s. 12A
- s. 15H
- s. 11(5)
- s. 230
Regulations
- Reg. 4
- Reg. 3
- Reg. 3(a)
Holding
The Noticees were found to have engaged in a 'marking the close' scheme to artificially inflate the settlement price of Ruchi Soya futures expiring September 27, 2012, and were directed to disgorge ill-gotten gains of Rs. 5.76 crore collectively.
Full text
Final Order in the matter of Ruchi Soya Industries Ltd. Page 1 of 59 WTM/ AB /EFD-1/DRA-2 /27/2020-21 SECURITIES AND EXCHANGE BOARD OF INDIA FINAL ORDER Under Sections 11(1), 11(4) and 11B of the Securities and Exchange Board of India Act, 1992
Final Order in the matter of Ruchi Soya Industries Ltd. Page 2 of 59 2012. The SCN alleges that Noticee nos. 1 to 5 had long positions in the futures of Ruchi Soya expiring on September 27, 2012 and thus, benefitted from the price rise in the cash market. Therefore, Noticee nos. 1 to 5 were alleged to have violated Section 12A (a), (b), (c) of SEBI Act, 1992, Regulations 3(a), (b), (c), (d), 4(1), 4(2)(a) and (e) of SEBI (Prohibition of Fraudulent and Unfair Trading Practices) Regulations, 2003 (hereinafter referred to as “PFUTP Regulations, 2003”). The SCN also alleges that Noticee nos. 6 and 7 did not trade in the scrip of Ruchi Soya in the NSE cash market during the last 30 minutes on September 27, 2012 but also held long positions in the futures of Ruchi Soya and benefitted from the price rise contributed to by Noticee nos. 1 to 5 who were connected to them and thus, were also alleged to have violated Section 12A (a), (b), (c) of SEBI Act, 1992, Regulations 3(a), (b), (c), (d), 4(1), 4(2)(a) of the PFUTP Regulations, 2003.
Final Order in the matter of Ruchi Soya Industries Ltd. Page 3 of 59 2.3. Details of price volume data of Ruchi Soya on NSE for the trading day September 27, 2012 are as below:
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Source: SecMarx — sebi:WTM/AB/EFD-1/DRA-2/27/2020-21. 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.