sebi:WTM/MPB/EFD1-DRA4/14/2019

SEBI · SEBI · 2017-12-15 · 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

Show cause notice disposed of without any directions

Provisions invoked

• s. 19

Regulations

• Reg. 4
• Reg. 3
• Reg. 4(1)
• Reg. 3(a)

Parties

• Nirshilp Securities Pvt. Ltd.

Holding

The Noticee, Nirshilp Securities Pvt. Ltd., has not manipulated the price in the scrip of WYL and has not created a misleading appearance of trading in the scrip during the period February 22, 2013 to April 29, 2013. The show cause notice dated December 15, 2017 was disposed of without any directions.

Full text

Order in the matter of Winsome Yarns Ltd. Page 2 of 19 entities in the scrip of WYL during the period September 30, 2010 to February 28, 2015 (hereinafter referred to as “Investigation Period”).

Order in the matter of Winsome Yarns Ltd. Page 3 of 19 SHOW CAUSE NOTICE 5. Consequent to the investigation, a show cause notice dated December 15, 2017 (hereinafter referred to as “SCN”) was served on Nirshilp Securities Ltd. (hereinafter referred to as “Noticee”) in the extant matter. The SCN inter alia alleged as follows: a) The Last Traded Price (hereinafter referred to as “LTP”) analysis of the 7 patches was done and the details of Patch 6 is given below: LTP Analysis: Patch 6 - Price rise patch from February 22, 2013 to April 29, 2013:  During this patch, the scrip price opened at ` 15.2 and closed at ` 29.20 on BSE. The net rise in the scrip price is ` 14. On NSE, the scrip price opened at ` 15.80 and closed at ` 29.35. The net rise in the scrip price is ` 13.55.

Order in the matter of Winsome Yarns Ltd. Page 4 of 19  Out of the total sale through 4,185 trades and 3,871 trades on BSE and NSE respectively, Noticee contributed ` 85.15 to positive LTP (31.44% of total market positive LTP, BSE) and ` 85.45 to positive LTP (26.85% of total market positive LTP, NSE) through 258 trades and 335 trades respectively. On analysis of these 258 and 335 positive LTP contributing trades, it was noted that in 198 trades on BSE and 241 trades on NSE, the sell orders were placed before the respective buy orders at higher LTP and for the remaining trades, the sell order were placed after the buy orders. The counter parties to the above mentioned 258 trades and 335 trades were unconnected and scattered.  However, on further analysis of the positive LTP contributing trades of Noticee, it was observed that in 179 out of the 198 positive LTP contributing trades on BSE and in 300 out of the 335 positive LTP contributing trades on NSE, sell orders placed by Noticee was for 1 share. Details of the 258 and 335 positive trades on BSE and NSE are as under : Sl. No. Description No. of trades (BSE) No. of trades (NSE) LTP Contri bution (Rs) (BSE) LTP Contri bution (Rs) (NSE) % of total market positive LTP (BSE) % of total market positive LTP (NSE) 1 Trades where sell order qty is 1 share 227 300 73.85 77.65 27.27 24.40 2 Trades where sell order qty is 2 - 10 shares 30 32 10.40 6.95 3.84 2.18 3 Trades where sell order qty more than 10 shares 1 3 0.90 0.85 0.33 0.2

Source: SecMarx — sebi:WTM/MPB/EFD1-DRA4/14/2019. 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.