sebi:WTM/MB/IVD/ID5/7095/2019-20

SEBI · SEBI · 2019-07-10 · Madhabi Puri Buch, Whole Time Member

This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.

Facts / Headnote

Violations of Sections 12A(a),(b),(c) of SEBI Act read with Regulations 3(a),(b),(c),(d), 4(1), 4(2)(a), 4(2)(e), 4(2)(g) of PFUTP Regulations established; allegation under Clause A(2) of Code of Conduct for Stock Brokers not attracted; MBL restrained from buying, selling or otherwise dealing in securities in its proprietary account for four years and existing holdings frozen.

Provisions invoked

• s. 11B
• s. 11
• s. 19
• s. 11(1)
• s. 12A

Regulations

• Reg. 7
• Reg. 4
• Reg. 3
• Reg. 6
• Reg. 4(1)
• Reg. 9
• Reg. 4(2)
• Reg. 3(a)

Parties

• MBL & Company Limited

Holding

MBL's self-trades in the scrip of Gujarat NRE Coke Limited (GNCL) were intentional and manipulative, violating Sections 12A(a),(b),(c) of the SEBI Act read with Regulations 3(a),(b),(c),(d), 4(1), 4(2)(a), 4(2)(e) and 4(2)(g) of the PFUTP Regulations. MBL is restrained from dealing in securities in its proprietary account for four years with existing holdings frozen.

Full text

Order in respect of MBL & Company Limited in the matter of M/s Gujarat NRE Coke Limited Page 2 of 25 the investigation period the scrip was traded on the Bombay Stock Exchange Limited (hereinafter referred to as ‘BSE’) and National Stock Exchange of India Limited (hereafter referred to as ‘NSE’).

Order in respect of MBL & Company Limited in the matter of M/s Gujarat NRE Coke Limited Page 3 of 25 Period Dates Open Close Low High Total traded shares (Daily Avg.) Before Investigation Period 15-Sep-2011 to 14-Dec-2011 Price 27.5 17.05 17.00 (14-Dec-2011) 27.60 (15-Sep-2011) 8,81,04,102 (14,44,330) Vol 24,18,721 12,98,808 3,26,342 (26-Oct-2011) 39,19,408 (05-Oct-2011) Investigation Period 15-Dec-2011 to 09-Oct-2014 Price 17 8.35 7.25 (08-Oct-2014) 28.70 (12-Mar-2012) 91,43,95,663 (12,98,857) Vol 22,72,849 58,05,919 34,441 (08-Sep-2012) 2,12,34,021 (28-Nov-2013) After investigation period 10-Oct-2014 to 09-Jan-2015 Price 8.30 5.7 5.35 (17-Dec-2014) 9.40 (14-Oct-2014) 14,97,99,200 (23,77,765) Vol 20,26,088 14,67,811 5,69,376 (23-Oct-2014) 1,06,46,538 (14-Oct-2014)

Order in respect of MBL & Company Limited in the matter of M/s Gujarat NRE Coke Limited Page 4 of 25 Millennium Stock Broking Pvt Ltd 5.75 4,32,688 1639 12.25 52,517 217 -6.50 20,551 110 3,59,620 1,312 0.54 Vaneck Associates Corporation A/C India Capital Appreciation 5.55 15,033 466 6.75 4,498 129 -1.20 361 24 10,174 313 0.30 Gkn Securities 5.50 1,97,292 501 6.10 36,029 101 -0.60 3,706 8 1,57,557 392 0.27 Quadeye Securities Pvt Ltd 4.60 4,58,765 2,309 7.75 48,306 152 -3.15 19,232 55 3,91,227 2,102 0.34 Mbl & Co. Limited 3.45 87,46,016 63,924 585.50 4,30,108 10,422 -582.05 17,62,425 10,443 65,53,483 43,059 25.57 Total Top 10 Entities 67.55 1,23,34,021 93,208 790.80 8,15,917 14,185 -723.25 21,48,945 13,021 93,69,159 66,002 34.54 Rest Entities -58.10 6,52,14,750 2,40,881 1,498.70 87,89,487 27,786 -1,556.80 71,81,432 28,796 4,92,41,551 1,84,299 65.46 Market Total 9.45 7,75,48,771 3,34,089 2,289.50 96,05,404 41,971 -2,280.05 93,30,377 41,817 5,86,10,710 2,50,301 100.00

Source: SecMarx — sebi:WTM/MB/IVD/ID5/7095/2019-20. 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.