sebi:WTM/AB/IVD/ID5/15735/2021-22
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Facts / Headnote
SCN disposed of without any directions or penalty
Provisions invoked
- s. 15
- s. 12
- s. 15H
- s. 12A
- s. 11B(2)
Regulations
- Reg. 3
Parties
- Bharat Jayantilal Patel
- Pat Financial Consultants Pvt. Ltd.
- Minal Bharat Patel
- Hardik Bharat Patel
- Prashant Jayantilal Patel
- Nirshilp Securities Private Limited
Holding
The SCN against all six Noticees was disposed of without any directions or penalty. The WTM found that the alleged synchronized trades by Noticees 1-5 and the alleged LTP-influencing trades by Noticee 6 did not establish violations of Section 12A of the SEBI Act read with the PFUTP Regulations.
Full text
Final Order in the matter of Crest Ventures Ltd. Page 1 of 28 WTM/AB/IVD/ID5/15735/2021-22 SECURITIES AND EXCHANGE BOARD OF INDIA FINAL ORDER Under Sections 11(1), 11(4), 11(4A) and 11B(1) and 11B(2) of the Securities and Exchange Board of India Act, 1992 and 15I of the Securities and Exchange Board of India Act, 1992 read with Rule 5 of the SEBI (Procedure for Holding Inquiry and Imposing Penalties) Rules, 1995
Final Order in the matter of Crest Ventures Ltd. Page 2 of 28 synchronized trades within themselves for 30,35,839 shares (17.55% of the market volume) in 16 trades over 8 trading days at BSE created misleading appearance of trading in the scrip of Crest Ventures Ltd. (hereinafter referred to as “Crest”) without any intention of change in ownership of the security and thereby violated provisions of Section 12 A (a), (b) and (c) of SEBI Act, 1992, read with Regulations 3 (a), (b), (c) and (d), 4 (1), 4 (2) (a) and (g) of SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003 (hereinafter referred to as “PFUTP Regulations, 2003”). The SCN also alleged that Noticee No. 6, contributed LTP of Rs.238.60 which is 20.17% of total market positive LTP in 442 trades for 1265 shares during price rise patch 1 of Investigation Period and with an intent to manipulate the scrip price, (a) repeatedly placed buy orders above prevailing sell
Final Order in the matter of Crest Ventures Ltd. Page 3 of 28 entered into bulk deals amongst themselves and reversed the said deals within a short period of time at either of the exchanges. 17 scrips wherein Bharat Patel Group executed major bulk deals were identified including the scrip of Crest by NSE and BSE. ii) Shares of Crest are listed on BSE & NSE. iii) The period under investigation in the present matter was December 15, 2011 to October 09, 2014 (hereinafter referred to as “Investigation Period”) The Investigation Period has been divided into five patches. The price movement of the scrip of Crest at BSE and NSE, before, during the five patches of the Investigation Period and after the Investigation Period is summarized below:
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Source: SecMarx — sebi:WTM/AB/IVD/ID5/15735/2021-22. 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.