sebi:WTM/MPB/EFD1-DRA4/19/2019

SEBI · SEBI · 2017-12-22 · 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

Noticee restrained from accessing the securities market for six years and prohibited from buying, selling or otherwise dealing in securities for six years; existing securities holdings frozen during the period of restraint.

Provisions invoked

• s. 11
• s. 19

Regulations

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

Parties

• Sapna Dilip Bombaywala

Holding

The Noticee manipulated the price of the scrip of Jolly Plastic Industries Ltd and created a misleading appearance of trading during February 14, 2012 to December 18, 2012, violating Regulations 3(a), (b), (c), (d) and 4(1), 4(2)(a), 4(2)(e) of the PFUTP Regulations. She is restrained from accessing the securities market for six years from the date of the order.

Full text

Order in the matter of Jolly Plastic Industries Ltd Page 2 of 14 entities in the scrip of JPIL during the period February 14, 2012 to November 27, 2014 (hereinafter referred to as “Investigation Period”).

Order in the matter of Jolly Plastic Industries Ltd Page 3 of 14 Period Dates Opening Price (volume) on first day of the period(`) Closing price (volume) on last day of the period (`) Low price(volume) during the period (`) High Price(volume ) during the period (`) Avg. no. of (shares) traded daily during the period Scrip suspended during pre-investigation period During Patch-1 14/02/2012 – 18/12/2012 Price 10 90.8 10 (14/02/2012) 90.8 (18/12/2012) 341 Vol 100 100 100 (on 56 different trading days) 5100 (29/11/2012) Patch-2 19/12/2012 – 05/02/2013 Price 92.6 35.55 34.5 (05/02/2013) 92.6 (19/12/2012) 1,430 Vol 4,900 4,600 100 (on 14 different trading days) 13900 (09/01/2013) Patch-3 06/02/2013 – 23/09/2013 Price 34.55 305 34.55 (06/02/2013) 305 (23/09/2013) 14,977 Vol 500 3,000 100 (on 12 different trading days) 140100 (04/09/2013) Patch-4 16/12/2013 – 25/06/2014 Price 288 49.5 49.5 (25/06/2014) 301.8 (16/12/2013) 41,852 Vol 38,600 100 100 (on 39 different trading days) 459100 (25/03/2014) Patch-5 09/07/2014 – 27/11/2014 Price 51.95 122 49.65 (03/09/2014) 122 (27/11/2014) 17,750 Vol 10,600 42,200 100 (on 11 different trading days) 105500 (20/11/2014) No trading and subsequently scrip suspended on 07/01/2015

Order in the matter of Jolly Plastic Industries Ltd Page 4 of 14 1 of the investigation period, an analysis of sellers for this patch was carried out. On the basis of their net positive LTP contribution as sellers, the following top 10 entities were considered for further analysis: Seller Name LTP impact all trades in ` QTY traded (all trades) No of trades (all trades) LTP impact (with LTP diff > 0) in ` QTY traded (with LTP diff > 0) No of trades (with LTP diff > 0) LTP impact(with LTP diff < 0) in ` QTY traded (with LTP diff < 0) No of trades (with LTP diff < 0) QTY traded (with LTP diff = 0) No of trades (with LTP diff = 0) % of Positive LTP to Total Market Positive LTP Sapna Bombaywala 40.34 6500 46 40.34 4100 41 0 0 0 2400 5 49.62% Bhikam Kothari 3.65 500 4 3.65 400 3 0 0 0 100 1 4.49% Motilal Jatanlal Begani 3.6 500 5 3.6 300 3 0 0 0 200 2 4.43% Lalji Ratanji Vanpariya 3.35 900 3 3.35 700 2 0 0 0 200 1 4.12% Ishwarlal Vanpariya 3.3 600 3 3.3 400 2 0 0 0 200 1 4.06% Varsha Thakker 2.3 400 3 2.3 200 2 0 0 0 200 1 2.83% Vijay Borsaliwala 1.8 200 2 1.8 200 2 0 0 0 0 0 2.21% Parameshwari 1.75 100 1 1.75 100 1 0 0 0 0 0 2.15% Rameshchandra Shah 1.6 800 2 1.6 300 1 0 0 0 500 1 1.97% Madhuri Bhagvat 1.55 100 1 1.55 100 1 0 0 0 0 0 1.91% Top 10 Sub Total 63.24 10600 70 63.24 6800 58 0 0 0 3800 12 77.79% Rest Of Market 17.56 16000 80 18.06 2500 19 -0.5 100 1 13300 59 22.21% Market Total 80.8 26600 150 81.3 9300 77 -0.5 100 1 17100 71 100%

Source: SecMarx — sebi:WTM/MPB/EFD1-DRA4/19/2019. 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.