sebi:WTM/AN/ISD/ISD-SEC-7/30591/2024-25
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Facts / Headnote
Interim Order confirmed; prima facie findings of fraudulent price/volume manipulation sustained and interim directions continued pending investigation.
Provisions invoked
- s. 11B
- s. 11
- s. 19
- s. 12A
- s. 406
Regulations
- Reg. 3
- Reg. 3(a)
Parties
- Vikas Garg
- Sandeep Srivastava
- Prijesh Kurani
- Dharini Kurani
- Rekha Kurani
- Surbhi Aggarwal
- Vinod Vilas Sable
- Seema Garg
- Madhu Srivastava
- Jai Kishorr Singhal
- Seema Agarwal
- Madhukar Chimanlal Sheth
- Pratik Madhukar Sheth
- Jinal Pratik Sheth
- Sudhir Gupta
Holding
The Whole Time Member confirmed the Interim Order, holding prima facie that the promoter, management and connected entities engaged in a fraudulent scheme to manipulate volume and price of V Marc India Limited in violation of SEBI Act and PFUTP Regulations.
Full text
Confirmatory Order in the matter of V Marc India Limited Page 2 of 121 listed on NSE’s SME segment for the period April 09, 2021 to April 30, 2021 (hereinafter referred to as “Examination Period”), based on a complaint dated September 21, 2022, to look into possible violations of provisions of Securities and Exchange Board of India Act, 1992 (“SEBI Act”) and SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 2003 (“PFUTP Regulations”). The promoter and management of the company along with connected entities prima facie devised a scheme prior to listing of the scrip and orchestrated fraudulent activity of manipulation of volume and price of V Marc shares thereby enabling the sale of shares at inflated prices to unsuspecting investors.
Confirmatory Order in the matter of V Marc India Limited Page 3 of 121 purchases constituting 92.40% of the total market wide purchases during the examination period. 3.4. Mr. Prijesh Kurani and other entities connected with him and the promoter – Mr. Vikas Garg contributed to 71.43% of the positive Last Traded Price (“LTP”) as net buyers during the examination period. 3.5. The examination was aided by data obtained from the mobile device of Mr. Prijesh Kurani, seized pursuant to the Search and Seizure operation carried out by SEBI at his residence in the month of May 2022, in the context of investigation in the matter of “Front Running of Trades of Axis Mutual Fund”. 3.6. Based on the factual matrix, it was prima facie noted that the entities collectively engaged in a fraudulent scheme to manipulate volume and price of the scrip of V Marc thereby prima facie violated section 12A(a), (b), (c) of the SEBI Act and regulations 3(a), (b), (c), (d), 4(1) and 4(2)(a), (b), (d), (e) and (g) of PFUTP Regulations. 3.7. The fraudulent activities of the entities resulted in the generation of prima facie wrongful gains, as mentioned in the table below. Table no. 1 S. No. Entity Name Entities bearing joint and several liability Wrongful gains (in INR)
Confirmatory Order in the matter of V Marc India Limited Page 4 of 121 Table no. 2 S. No. Entity Name Role 1. Vikas Garg Promoter, Chairman and MD of V Marc
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Source: SecMarx — sebi:WTM/AN/ISD/ISD-SEC-7/30591/2024-25. 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.