sebi:WTM/MPB/ISD/2/2018
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Facts / Headnote
Interim ex parte order prohibiting 28 named entities from buying, selling or dealing in securities and directing them to cease and desist from disseminating messages or news related to the securities market, pending investigation; entities given 30 days to file objections.
Provisions invoked
- s. 11
- s. 19
- s. 12A
Regulations
- Reg. 3
- Reg. 2(1)(c)
- Reg. 4(1)
Holding
The WTM prima facie found that Abhishek Ashoka and 27 connected entities acted in a fraudulent and deceitful manner by devising a scheme to defraud unsuspecting investors through circulation of misleading bulk SMSes recommending purchase of KCL scrip, attracting prohibitions under section 12A of the SEBI Act and regulations 3 and 4 of the PFUTP Regulations, and accordingly imposed interim prohibitions on dealing in securities and disseminating market messages.
Full text
Ex parte Interim Order in the matter of Kalpa Commercial Limited Page 2 of 24 S. No. PAN Name 20. AFIPJ3488G RAMAN JINDAL 21. AAMHR6192L RAMESH KUMAR VALECHA (HUF)
Ex parte Interim Order in the matter of Kalpa Commercial Limited Page 3 of 24 Category 2015 2016 2017 EPS (Rs./Share) 0.08 0.11 0.10 Operating Profit Margin% 1.65 3.19 2.66 Net Profit Margin% 1.04 2.20 1.85 Source: BSE website
Ex parte Interim Order in the matter of Kalpa Commercial Limited Page 4 of 24 8. As per the data provided by Airtel, around 3.42 crore bulk SMSes were circulated through aggregator/telemarketer which recommended ‘buy’ for the scrip of KCL. Further examination by SEBI brought out that some persons/entities acting as a group have employed misleading SMSes as a tool for creating investor interest and offloading their shares in a manipulative manner through layering of off market transactions or directly taking advantage of the volumes created through misleading SMS.
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Source: SecMarx — sebi:WTM/MPB/ISD/2/2018. 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.