sebi:WTM/AB/SEBI/EFD-I/DRA-IV/41/2019-20
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Facts / Headnote
Noticee restrained from accessing the securities market and prohibited from buying, selling or otherwise dealing in securities for a period of three years
Provisions invoked
- s. 11
- s. 19
- s. 11(1)
- s. 11(4)
- s. 11B
- s. 24(1)
Regulations
- Reg. 4
- Reg. 3
- Reg. 4(1)
- Reg. 3(a)
Parties
- Adamina Traders Pvt. Ltd.
Holding
The Noticee violated Regulations 3(a), (b), (c) and (d) and Regulation 4(1), 4(2)(a) and (e) of the PFUTP Regulations by marking the price of SHL higher through small-quantity buy orders, and was restrained from accessing the securities market for three years with existing holdings frozen.
Full text
Page 2 of 20 Order in the matter of Secunderabad Healthcare Ltd. of the Noticee in respect of its impugned trades were also enclosed as annexure with the SCN. The SCN also called upon the Noticee to show cause as to why suitable directions under Section 11(1), 11B and 11(4) of the Securities and Exchange Board of India Act, 1992 (hereinafter referred to as “SEBI Act”) should not be issued against it.
Page 3 of 20 Order in the matter of Secunderabad Healthcare Ltd. the Noticee and accordingly, another opportunity of hearing was granted to the Noticee on January 25, 2019 wherein the Noticee failed to appear. A final opportunity of hearing was granted to the Noticee on May 02, 2019. The AR of the Noticee appeared before me during the hearing on May 02, 2019 and filed a reply on the same date. The AR argued that there has been a delay of four years in issuing the SCN as a result of which the Noticee may not be able to present an effective reply. It was argued that as per the SCN, the Noticee had carried out 554 trades contributing to a positive Last Traded Price (hereinafter referred to as “LTP”) of Rs. 130.31 but details of only 176 trades has been provided to the Noticee. The AR argued that in order to put up a proper reply, the Noticee needs to examine all the 554 trades. The AR also requested for copies of all relevant order logs and trade logs and the basis of connection between the Adamina Group as alleged in the SCN. In response to the said request of the Noticee, an email dated June 12, 2019 was sent to the Noticee reiterating that the relevant trade log had already been provided to it and additionally providing copy of the bank transactions of the Noticee evidencing fund transfer between the Noticee and SHL. Thereafter, vide letter dated July 12, 2019 the Noticee made additional submissions. Vide email dated December 13, 2019 the Noticee was further requested to info
Page 4 of 20 Order in the matter of Secunderabad Healthcare Ltd. 4. The Noticee has made the following submissions during the hearing, in its reply and additional submissions:
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Source: SecMarx — sebi:WTM/AB/SEBI/EFD-I/DRA-IV/41/2019-20. 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.