sebi:WTM/KMA/IVD/388/06/2011
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Facts / Headnote
Show cause notices dated July 23, 2007 in the matter of Balaji Industrial Corporation Limited disposed of without any directions; all five noticees given benefit of doubt
Provisions invoked
- s. 19
Regulations
- Reg. 11
Parties
- Smruthi Agro Farms Private Limited (now known as Skokie Traders Private Limited)
- Kyvalya Agro Farms Private Limited (now known as Kyvalya Traders Private Limited)
- Ramya Traders Private Limited
- Sudheer Real Estates Private Limited
- Vyshnavi Real Estate & Property Limited
Holding
The show cause notices dated July 23, 2007 against Smruthi Agro Farms (Skokie Traders), Kyvalya Agro Farms (Kyvalya Traders), Ramya Traders, Sudheer Real Estates and Vyshnavi Real Estate & Property in the matter of Balaji Industrial Corporation Limited were disposed of without any directions, as the manipulation charges were not established and the entities were entitled to benefit of doubt.
Full text
Page 2 of 12 and (b) of the Securities and Exchange Board of India (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 1995 (hereinafter referred to as the PFUTP Regulations). Brief facts of the case as mentioned in the notices are as follows: SEBI conducted investigation into the dealings in the shares of the Company for the period February 28, 2000 to August 28, 2000 and March 26, 2001 to September 21, 2001, in view of the unusual price movements. The investigation conducted by SEBI observed that on the Bombay Stock Exchange Limited (hereinafter referred to as BSE), the share price of the Company had increased from `27.90 on February 28, 2000 to `90 on April 3, 2000. Thereafter, the share price started falling from `88.95 on April 10, 2000 to `57.05 on May 5, 2000 and again went up to `152.25 on May 30, 2000 and came down to `103.30 on June 8, 2000. The share price closed at `119.35 on the same day. Subsequently, it was fluctuating between `115.40 and `130.35 and closed at `123 on August 28, 2000. At BSE, during the period- February 28, 2000 to August 28, 2000, a total of 2,70,400 shares were traded in 120 days. It was observed that at BSE, the stock broker, Macy Securities Private Limited, on behalf of its clients, had placed 64 buy orders at a higher price, ranging from `0.50p to `18.10, [compared to the last traded price (LTP)] on 77 days for 36,900 shares which resulted in 222 trades. It was alleged that, out of those trades
Page 3 of 12 higher than the last traded price, the difference ranging from `0.03 to `15.38. Those orders were placed on 46 trading days out of the total 141 trading days resulting in trades involving 41,200 shares. The said trades were placed between February to May 2000 and the share price during the said period went up from `27.50 to `151.25. It was alleged that the major clients of the said stock broker were Kyvalya Traders Private Limited and Skokie Traders Private Limited. It was further alleged that at NSE, the entity, Sudheer Real Estate Private Limited had sold 2,05,000 shares (constituting 30% of the total trading) between June 14 to June 23, 2000, where the counter party buyer was Unit Trust of India (UTI). It was further alleged that at the Madras Stock Exchange Limited (MSE), during the period-June to July 2000, the Company related entities namely, Ramya Traders Private Limited and Sudheer Real Estates Private Limited had sold 9,00,000 shares in the price range- `125 to `128 through the stock broker Patterson & Co. for which the counter party client was UTI. It was alleged in brief that the entities against whom the notices dated July 23, 2007 were issued were associated/related to the Company and that their transactions in the shares of the Company had influenced the share price and volume.
Page 4 of 12 Vyshnavi Real Estate & Property Limited) and Mr. Deepak Dhane, Advocate (on behalf of Ramya Traders Private Limited and Sudheer Real Estates Private Limited) appeared and made submissions. SEBI also received written
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Source: SecMarx — sebi:WTM/KMA/IVD/388/06/2011. 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.