sebi:WTM/PS/ID2/146/DEC/2011
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Facts / Headnote
Order passed against 29 noticees; objections invited within 21 days with opportunity of personal hearing; order to come into force with immediate effect
Provisions invoked
- s. 19
- s. 11(1)
- s. 12A
- s. 12
- s. 23D
Regulations
- Reg. 11
- Reg. 3
- Reg. 26
- Reg. 3(b)
- Reg. 59
Holding
SEBI prima facie held that a set of clients, fronted by broker Grishma Securities Pvt. Ltd. through its client Shri Jivraj Zala, engaged in structured/reversed trades and coordinated order placement on the first day of listing of Tijaria Polypipes Ltd. to provide exits to QIBs and retail allottees at a premium to the issue price of Rs. 60, defrauding genuine investors. The order directs investigation to proceed and invites objections from the 29 noticees.
Full text
2 huge losses to retail investors. It was observed that there was a huge fall in price on the first day of trading. The open, high, low & close prices and volumes on the first day of trading in Tijaria Polypipes Ltd. on exchanges BSE and NSE were as given below: Tijaria Polypipes Ltd. Listing Date: October 14, 2011 Exchange Open Price ` High Price ` Low Price ` Close Price ` Volume BSE 62.00 67.80 16.05 18.10 4,74,75,546 NSE 61.00 67.75 16.50 18.60 5,99,65,008
3 shares), GKN Securities (19,096 shares), A K G Securities And Consultancy Ltd. (18,811 shares) and Shri Naveen Taparia (15,000 shares). The top five counterparties to the trades of IPRO on the first day of trading on NSE were GKN Securities (3,94,35 shares), R M Shares Trading Private Ltd. (38,865 shares), Chandarana Intermediaries Brokers Pvt. Ltd. 18,425 shares), Genuine Stock Brokers Pvt. Ltd. (12,332 shares) and Champaklal Narshibhai Pujara (9,698 shares).
4 (i.e. at a premium of ` 3 to the issue price of ` 60) by the aforesaid mentioned clients on the first day of trading in the scrip of Tijaria Polypipes Ltd. on NSE, who, in turn, had incurred heavy losses. The details of number of retail allottees from whom the top five counterparty clients had bought on NSE the maximum 2,757 shares allotted to them, the total quantity of shares bought from these retail allottees and the price at which these shares were bought is annexed at Annexure 5.
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Source: SecMarx — sebi:WTM/PS/ID2/146/DEC/2011. 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.