sebi:WTM/AB/EFD-I/DRA-4/12/2018-19
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Facts / Headnote
SCN dated August 09, 2017 disposed of without any direction as against Noticee Nos. 1 to 5; Noticee Nos. 6 and 7 restrained from accessing the securities market and prohibited from buying, selling or otherwise dealing in securities for 2 years
Provisions invoked
- s. 19
- s. 372A
- s. 11C
Regulations
- Reg. 4
- Reg. 3
- Reg. 4(1)
- Reg. 200
- Reg. 3(a)
Parties
- Confidence Finance and Trading Ltd.
- Mr. Manoj Kumar Naginlal Jain
- Mr. Amruth Jaochim Coutinho
- Mr. Lalitkumar Roshanlal Maroo
- Ms. Swati Panchal
- Mr. Ghanshyam Kachhawa
- Mr. Daulat Laxmi Chandraliya
Holding
Noticee Nos. 1 to 5 did not violate PFUTP Regulations and no direction was issued against them, while Noticee Nos. 6 and 7 manipulated the price of CFTL in Patch 1 in violation of Regulations 3(a)-(d) and 4(1), 4(2)(a) and (e) and were restrained for 2 years.
Full text
Order in the matter of Confidence Finance and Trading Limited Page 2 of 28 alleging that certain entities had used the stock exchange mechanism to generate Long Term Capital Gain Tax (LTCG) and CFTL was one such scrip mentioned in the aforesaid letters. Further, while the investigation was underway, SEBI received letter dated April 01, 2016 from the Office of the Joint Commissioner of Income Tax, Range 19(2), Mumbai forwarding a report of the Assistant Commissioner of Income Tax, Mumbai which stated that there was a sharp rise in the price of the scrip of CFTL, not supported by corporate actions. Show Cause Notice, Reply to Show Cause Notice and Personal Hearing:
Order in the matter of Confidence Finance and Trading Limited Page 3 of 28 company is trading in all type of goods and financial services. The name of the company has been changed from Confidence Trading Company Ltd. to Confidence Finance and Trading Limited. The company was suspended from trading by BSE from January 14, 2003 to June 30, 2011 due to non-compliance with listing agreement. The suspension was revoked by BSE w.e.f. July 1, 2011. For the purpose of investigation, the relevant period based on price manipulation was fixed from September 04, 2012 to March 28, 2014. Prior to the investigation period, CFTL had allotted 1 crore shares of Rs. 10/- per share on preferential basis to 49 non promoter entities on September 27, 2011 at a price of Rs. 15/- per share. The shares allotted in the preferential allotment were under lock-in up to one year till September 26, 2012. There was no trading in the scrip subsequent to revocation of suspension by BSE on July 1, 2011. b) On the basis of movement of price of the scrip as well as trading pattern of the entities, the investigation period had been divided into the following patches to look into the role of suspected entities in influencing the price of the scrip.
Order in the matter of Confidence Finance and Trading Limited Page 4 of 28 c) No manipulative trading could be established in Patch 2, 3 and 4. d) In Patch 1, a price rise patch, the buy trades of top 10 LTP contributors is given below:
You have read the preview. Create a free account to read the full order, track this party, and analyse it in Ontology.
Free accounts include 10 searches/day with full order access.
Source: SecMarx — sebi:WTM/AB/EFD-I/DRA-4/12/2018-19. 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.