sebi:WTM/PS/50/IVD/ID-1/OCT/2010
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Facts / Headnote
Restrained Advik Laboratories Ltd., V.K. Jain, Aditya Jain, Divya Jain, Kumud Jain, Rajkumar Jain, Vivek Jain, Shivani Jain and Advik Finance and Properties Pvt. Ltd. from buying, selling, dealing in or accessing the securities market for one year; proceedings against Late Ms. Shakuntala Jain abated due to death.
Provisions invoked
- s. 19
Regulations
- Reg. 11
- Reg. 3
- Reg. 7(1)
- Reg. 7(3)
- Reg. 13(6)
- Reg. 7(1)(A)
Parties
- Advik Laboratories Ltd.
- Mr. V.K. Jain
- Mr. Aditya Jain
- Ms. Divya Jain
- Ms. Shakuntala Jain
- Ms. Kumud Jain
- Mr. Rajkumar Jain
- Mr. Vivek Jain
- Ms. Shivani Jain
- Advik Finance and Properties Pvt. Ltd.
Holding
Advik, V.K. Jain and connected promoter entities manipulated the scrip through misleading pre-mature corporate announcements and synchronized trading to offload promoter holdings, violating PFUTP, SAST and PIT disclosure norms, and were restrained from the securities market for one year; proceedings against Late Shakuntala Jain abated.
Full text
Page 2 of 15 2. During the period the price of scrip increased from `19.91 as on September 29, 2003, touched a high of `31.70 as on December 30, 2003 in 67 trading days and closed at `29.30 as on January 5, 2004. The trading volume of the scrip had also increased from a daily average of around 400 shares before the investigation period to 8,50,000 shares during the investigation period at BSE.
Page 3 of 15 Further, it was alleged that promoters of Advik had not made any disclosure of change in shareholding. The SCN, therefore, alleged that the acts of Advik and Mr. V.K. Jain were in violation of Regulations 3 (a),(b),(c),(d), 4(1), 4(2)(k) and (r) of PFUTP Regulations, Regulation 7(3) of SAST Regulations and Regulation 13(6) of SEBI (Prohibition of Insider Trading) Regulation, 1992 (hereinafter referred to as ‘PIT Regulations’). Accordingly, SCN called upon Advik and V.K. Jain to show cause as to why action under Sections 11, 11(4) and 11B of SEBI Act, including restraining them from accessing the capital market and prohibiting from buying, selling or dealing in securities in any manner for a particular period should not be initiated against them. Advik and Mr. V K Jain replied to this SCN vide their letter dated June 10, 2008.
Page 4 of 15 alone. For the purposes of reply to SCN dated September 17, 2008, he preferred to rely on his earlier reply dated June 10, 2008 for the said entities also.
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Source: SecMarx — sebi:WTM/PS/50/IVD/ID-1/OCT/2010. 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.