sebi:WTM/PS/71/IVD/ID-06/March/2012
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Facts / Headnote
Restrained the noticees from accessing the securities market and prohibited them from buying, selling or otherwise dealing in securities, directly or indirectly, for a period of one (1) year.
Regulations
- Reg. 4(a)
- Reg. 4(1)
Parties
- Shri Heerachand Salecha
- Great Eastern Mercantile Pvt. Ltd.
- Adinath Propcon Pvt. Ltd.
- Shri Ramsudhakaran
- Shri Chetan Haridas Mapara
- Shree Shyam Fabtex Pvt. Ltd.
- Shri Rajender Rai
Holding
The noticees violated Regulations 4(a), (b), (c) and (d) of the PFUTP Regulations, 1995 read with Regulation 4(1), 4(2)(a), (b), (e), (g) and (n) of the PFUTP Regulations, 2003 by creating artificial volumes in the scrip of Sun Infoways Ltd. through circular and synchronized trades. The noticees were restrained from accessing the securities market for a period of one year.
Full text
Page 2 of 15 the “noticees”). Such circular/ reversal trades created artificial volumes to the tune of 5,43,500 shares (gross), executed in 2443 trades resulting out of 363 buy orders and 364 sell orders. Circular trades generated 26% to 97% of daily volumes on the days when such trading was observed. The daily traded volume in the scrip was considerably high, due to circular trading amongst the select brokers and their clients, in the first part of the investigation period, that is, from February 5, 2001 to March 2, 2001 (settlement numbers 46 to 49). These trades led to an increase in the price of the scrip from the beginning of the investigation period to March 2, 2001, and the price stayed in the range of Rs.342 to Rs.296 (opening price). Thereafter, the trading of these entities in the scrip reduced drastically and the volume of trades in the scrip became negligible. The price of the scrip also started declining, and by April 30, 2001 the price fell to Rs. 60.75 before rising marginally to Rs. 73.75 at the end of the investigation period. It was thus alleged that certain entities, including the noticees herein, had created artificial volumes in the scrip by executing circular trades which were synchronized in terms of order price, time and quantity, and thus violated Regulations 4(a), (b), (c) and (d) of SEBI (Prevention of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 1995 (hereinafter referred to as “PFUTP Regulations, 1995”) read wi
Page 3 of 15 on October 17, 2010 in the Times of India with respect to Shree Shyam Fabtex Pvt. Ltd., Chetan Haridas Mapara, Heerachand Salecha and Adinath Propcon Pvt. Ltd. as a mode of substituted service to these noticees, with an advice that in the absence of any reply, the matter would be proceeded ex-parte. However, no reply has been received from any of the noticees till date. Accordingly, I am compelled to proceed with the matter, ex-parte, on the basis of material available on record, having complied with the principles of natural justice.
Page 4 of 15 Securities) Joindre Capital Services 1.Heerachand Salecha 2.Kamlesh Jain (Alwin Securities) 14/9 5600 8900 14500 (34.65%)
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Source: SecMarx — sebi:WTM/PS/71/IVD/ID-06/March/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.