sebi:WTM/PS/62/IVD/ID-01/JAN/2012
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Facts / Headnote
Vivenasri and its directors restrained from accessing the securities market for six months; show cause notice against Newfin and its directors disposed of without directions.
Provisions invoked
- s. 11B
- s. 11
- s. 19
Regulations
- Reg. 4(b)
Parties
- Vivenasri Financial Services Limited
- Mr. K. Satyajit Ray
- Mr. A. Rajendra Prasad
- Mr. P.V. Murlikrishna
- Newfin Financial Services Private Limited
- Mr. G.S. Sridhar
Holding
Vivenasri Financial Services Limited and its directors Mr. A. Rajendra Prasad, Mr. P.V. Murlikrishna and Mr. K. Satyajit Ray were found guilty of violating Regulations 4(b), 4(c) and 4(d) of the PFUTP Regulations for creating artificial volume in the scrip of Datasoft, and restrained from accessing the securities market for six months. The show cause notice against Newfin Financial Services Private Limited and its directors was disposed of without any directions.
Full text
Page 2 of 7 3. On completion of investigation, SEBI issued Show Cause Notice (hereinafter referred to as ‘SCN’) dated December 21, 2009 to Vivenasri and its directors namely Mr. K. Satyajit Ray, Mr. A. Rajendra Prasad and Mr. P.V. Murlikrishna under Sections 11 and 11B of the Securities and Exchange Board of India Act, 1992 (hereinafter referred to as ‘SEBI Act’). The SCN alleged that Vivenasri had created artificial volume in the scrip of Datasoft by executing self trades and matched trades with Rijan Securities Private Limited (hereinafter referred to as ‘Rijan’). The SCN, also alleged that the acts of Vivenasri, its directors namely Mr. K. Satyajit Ray, Mr. A. Rajendra Prasad and Mr. P.V. Murlikrishna were in violation of Regulations 4(b), (c) and (d) of the PFUTP Regulations. Accordingly, the SCN called upon Vivenasari and its directors to show cause as to why suitable directions under Section 11 read with Section 11B of the SEBI Act including the direction of restraining them from accessing the securities market should not be initiated against them.
Page 3 of 7 directors namely Mr. K. Satyajit Ray, Mr. A. Rajendra Prasad, Mr. P.V. Murlikrishna (hereinafter all collectively referred to as ‘noticees’) on July 08,
Page 4 of 7 Vivenasri used these shares for trading in the scrip of Datasoft by entering orders which on the most of occasions resulted in self trades wherein the orders were matched with its own counterparty order on the other side. On few occasions, its trade matched with Rijan also. A detailed settlement wise table showing the volume contributed by Vivenasri to the total volume traded in the scrip of Datasoft has been brought out below: Table A Sett. No. Total Volume Volume by Vivenasari % of Vivenasari to total volume 33 2,00,710 1,43,020 71.26% 34 1,09,374 96,215 87.97% 35 2,09,314 1,46,311 69.90% 36 2,27,060 1,72,745 76.08% 37 2,23,720 1,33,805 59.81% 38 3,05,226 1,81,723 59.54% 39 1,20,580 3,380 2.80% 41 2,77,042 2,31,470 83.55% 42 1,95,930 1,59,065 81.18% 43 1,30,220 1,05,290 80.86% 44 3,58,120 3,00,175 83.82%
You have read the preview. Create a free account to read the full order, track this party, and analyse it in Ontology.
Free accounts include 10 searches/day with full order access.
Source: SecMarx — sebi:WTM/PS/62/IVD/ID-01/JAN/2012. 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.