sebi:WTM/MPB/EFD1-DRA4/27/2019
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Facts / Headnote
Restrained Shyam Rathi HUF from accessing the securities market for two years and prohibited from buying, selling or otherwise dealing in securities for two years; existing holdings frozen during restraint period.
Provisions invoked
- s. 11
- s. 19
- s. 151
Regulations
- Reg. 4
- Reg. 3
- Reg. 4(1)
- Reg. 3(a)
Parties
- Shyam Rathi HUF (PAN: AAQHS7786D)
Holding
The Noticee, Shyam Rathi HUF, was found to have violated Regulations 3(a), (b), (c), (d) and 4(1), 4(2)(a), 4(2)(e) of the PFUTP Regulations by executing manipulative sell trades in miniscule quantities over the LTP in the scrip of Shree Shaleen Textiles Limited, and was restrained from accessing the securities market for two years.
Full text
Order in the matter of Shree Shaleen Textiles Limited Page 2 of 17 3. During the investigation period, corporate announcements broadly included declaration of financial results and meetings of the Board of Directors of the Company. Further, it is observed from the Investigation Report (hereinafter referred to as “IR”) that net sales of the company increased from ` 0.37 crore as on March 31, 2011 to ` 2.65 crore as on March 31, 2014. The profit of company increased from ` 0.30 crore for the year ended March 31, 2011 to ` 0.48 crore for the year ended March 31, 2014.
Order in the matter of Shree Shaleen Textiles Limited Page 3 of 17 a) The LTP analysis of the 4 patches was done and the details of Patch 2 qua the Noticees is given below: LTP Analysis: Patch-2: Post Bonus – Price Rise Period – 30/03/2012 to 05/03/2013: During this period, the price of the scrip rose from ` 4 (Opening Price) as on March 30, 2012 to ` 111.85 (High Price and Close Price) as on March 05, 2013. Further, with ex-date of March 06, 2013, SSTL sub-divided face value of shares from ` 10/- to ` 2/. The list of shareholders received from RTI (Purva Sharegistry (I) Pvt Ltd.) was analyzed and it was observed that as on March 31, 2012, 85.34% of the share capital (5,76,050 shares out of 6,75,000 shares) were held in physical form or with entities which had converted warrants (shares issued on conversion of warrants were under lock-in till November 14, 2012). The top 10 net LTP sellers analysis were carried out as under:
Order in the matter of Shree Shaleen Textiles Limited Page 4 of 17 than 5% of the positive LTP in more than one trade were analyzed and the trades of the Noticee are as under:
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Source: SecMarx — sebi:WTM/MPB/EFD1-DRA4/27/2019. 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.