sebi:WTM/RKA/IVD/ID-4/39/2012
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Facts / Headnote
Show cause notices dated July 05, 2011 and July 12, 2011 disposed of; Chandra, Kundan, Jay, Mr. Harsh Shirish Maniar, Mr. Jay Shirish Maniar and Maruti restrained from accessing the securities market for four years from the interim order dated June 04, 2009; Mr. K. Varadarajan restrained for three years from the date of this order; restraint on HSM and Shanti considered already served; directions to be served on stock exchanges and depositories.
Provisions invoked
- s. 19
- s. 12A
Regulations
- Reg. 11
- Reg. 3
- Reg. 6
- Reg. 4(2)
- Reg. 3(a)
- Reg. 8
Parties
- Chandra
- Kundan
- Jay
- HSM (Harsh Shirish Maniar)
- Shanti
- Mr. Harsh Shirish Maniar
- Mr. Jay Shirish Maniar
- Maruti
- Mr. K. Varadarajan
Holding
The noticees were found to have indulged in circular trading, synchronized trades and reversal of trades in five scrips ('Temptation', 'Bang', 'Confidence', 'Cals', 'SPSL') creating artificial volumes, in violation of PFUTP Regulations and section 12A of the SEBI Act; however, the charge of price manipulation was not established. Market restraint orders were imposed on the noticees for varying periods.
Full text
Page 2 of 44 referred to as ‘five scrips’. On examination of the trade data relating to these five scrips, inter-linkages among certain entities (hereinafter collectively referred to as the ‘connected clients’) dealing in these five scrips were noticed in the form of off-market transactions as well as synchronized deals in the market. The names of these ‘connected clients’ are mentioned in the show cause notices issued under these proceedings. These ‘connected clients’ were found to be having large trading concentration in the said five scrips and a substantial portion of their trading amongst themselves in synchronized manner was found to have contributed to the increase in the market volume of those five scrips.
Page 3 of 44 Table I : List of charges against respective noticees: Sl. No. Name of the entity Allegation Violation 1. Chandra Executed circular and synchronized deals in the five scrips and executed reverse trades in the scrips of 'Temptation', 'Bang' and 'Cals'; which created artificial volumes in the respective scrips and manipulated the price of the scrips of 'Bang', 'Confidence', 'Cals' and 'SPSL'. Regulations 3(a), (b), (c) and (d) and 4(1), 4(2) (a), (b), (e) and (g) of the PFUTP Regulations read with section 12A (a), (b) and (c) of SEBI Act.
Page 4 of 44 Maniar and (ii) Mr. Jay Shirish Maniar charge of the day to day management of these companies. and 4(1), 4(2) (a), (b), (e) and (g) of the PFUTP Regulations.
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Source: SecMarx — sebi:WTM/RKA/IVD/ID-4/39/2012. 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.