sebi:WTM/MPB/EFD1-DRA4/72/2018

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

Ms. Sushma Agarwal restrained from accessing the securities market for a period of four years from the date of the order and prohibited from buying, selling or otherwise dealing in securities, directly or indirectly, or being associated with the securities market in any manner for four years; existing holding including units of mutual funds to remain frozen during restraint.

Provisions invoked

• s. 19

Regulations

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

Parties

• Ms. Sushma Agarwal

Holding

The Noticee manipulated the price of Winsome Yarns Ltd. and created a misleading appearance of trading through 353 manipulative single-share buy trades contributing to positive LTP, violating Regulations 3(a),(b),(c),(d) and 4(1), 4(2)(a) and (e) of PFUTP Regulations, and was therefore debarred from the securities market for four years.

Full text

Order in the matter of Winsome Yarns Ltd. Page 2 of 15 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 15 SHOW CAUSE NOTICE 5. Consequent to the investigation, a show cause notice dated December 15, 2017 (hereinafter referred to as “SCN”) was sent to Ms. Sushma Agarwal (hereinafter referred to as “Noticee”) in the extant matter. The same came back undelivered. However, the SCN was served on the Noticee by hand delivery acknowledgment due by SEBI, Eastern Regional Office on March 7, 2018. The SCN inter alia alleged as follows: a) The LTP analysis of the 7 patches was done and the details of Patch 1 is given below: LTP Analysis: Patch 1 - Price rise patch from September 30, 2010 to May 18, 2011:  During this patch, the scrip price opened at ` 2.41 and closed at ` 4.87 on BSE. The net rise in the scrip price is ` 2.46. On NSE, the scrip price opened at ` 2.25 and closed at ` 4.90. The net rise in the scrip price is ` 2.65. For this price rise patch, buy side of the trades were analysed.

Order in the matter of Winsome Yarns Ltd. Page 4 of 15 trades. On analysis of these 172 positive LTP contributing trades, it was noted that in 167 trades, the buy orders were placed after respective sell orders. While for the remaining 5 trades, the buy orders were placed before the sell

Source: SecMarx — sebi:WTM/MPB/EFD1-DRA4/72/2018. 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.