sebi:WTM/AB/IVD/ID6/20272/2022-23
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Facts / Headnote
13 Noticees directed to disgorge individual unlawful gains totalling Rs. 1,60,76,904 with 12% simple interest from transaction dates till payment within 45 days, failing which restraint from securities market; bank/demat debit and asset alienation restrictions imposed
Provisions invoked
- s. 11B
- s. 11
- s. 19
- s. 15H
- s. 28A
Regulations
- Reg. 3(a)
Holding
The 13 Noticees as part of a 21-entity group violated PFUTP Regulations by creating artificial volume, manipulating price from Rs.0.31 to Rs.0.90 and off-loading shares in Patch-2, and are liable to disgorge Rs.1,60,76,904 with 12% interest.
Full text
Final Order in the matter of Sarang Chemicals Limited Page 1 of 28 WTM/AB/IVD/ID6/20272/2022-23 SECURITIES AND EXCHANGE BOARD OF INDIA FINAL ORDER
Final Order in the matter of Sarang Chemicals Limited Page 2 of 28 “………………..15. In view of the aforesaid, the impugned order of the WTM and AO in so far as the appellants are concerned are quashed. The appeals are allowed. The matter is remitted to the authority concerned to pass a fresh
Final Order in the matter of Sarang Chemicals Limited Page 3 of 28 (iii) On January 03, 2011, January 04, 2011 and January 05, 2011, shares in the scrip were traded in low volume i.e., 26,748 shares, 34,632 shares and 276 shares, respectively, i.e. an average of 20,552 shares. However, there was a steep increase in the volume of shares traded on January 6, 2011, when the market volume had increased to 6,37,828 shares i.e., 30.03 times increase. This increase was due to the sale of 6,00,000 shares by Noticee no. 2 to Noticee no. 3, which was 94% of the market volume. It was also noted that the broker, Atlanta Share Shopee Limited, placed the sell order on behalf of Noticee no. 3, for 6,00,000 shares at Rs 0.33 at 12:38:38, and the entire sell quantity was bought by Noticee no. 2, through 48 buy orders between 15:16:50 and 15:19:31 through the sub-broker Presilcolmpex Limited and broker SKSE Securities Limited.
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Source: SecMarx — sebi:WTM/AB/IVD/ID6/20272/2022-23. 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.