sebi:WTM/SM/IVD/32/2021-22
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Facts / Headnote
Noticee nos. 1-3, 5-15, 17-21 held to have violated Regulation 3(a),(b),(c),(d) and 4(1), 4(2)(a),(e) of the PFUTP Regulations; restrained from accessing the securities market and prohibited from buying, selling or otherwise dealing in securities for three months from the date of the order; existing holdings frozen during the restraint period. Noticee nos. 4 and 16 not held liable for the violations.
Provisions invoked
- s. 11B
- s. 19
Regulations
- Reg. 4
- Reg. 3
Holding
The Noticees (except Noticee nos. 4 and 16) were found to have violated Regulations 3(a),(b),(c),(d) and 4(1), 4(2)(a),(e) of the PFUTP Regulations by placing buy orders at prices higher than available sell orders in 1252 instances, thereby attempting to inflate the scrip's price with manipulative intent, and were restrained from accessing the securities market for three months.
Full text
Order in the matter of Shantanu Sheorey Aquakult Ltd. Page 1 of 36 WTM/SM/ IVD/32/2021-22 SECURITIES AND EXCHANGE BOARD OF INDIA CORAM: S.K. MOHANTY, WHOLE TIME MEMBER
Order in the matter of Shantanu Sheorey Aquakult Ltd. Page 2 of 36 Background: 1. The present proceedings arise out of an investigation conducted in the scrip of Shantanu Sheorey Aquakult Ltd. (hereinafter referred to as “SSAL/the Company”) for the period of March 01, 2014 to May 31, 2016 (hereinafter referred to as “the investigation period”), in which a common show cause notice dated August 09, 2017 (hereinafter referred to as “the SCN”) was issued to 21 entities named above. The facts necessary for the present proceedings, as have been captured in the said SCN are briefly stated hereunder: i. The scrip of the Company was listed on BSE Limited. The price of the scrip opened at INR 4.95 on March 03, 2014, which touched a high of INR 261 on May 26, 2016 before closing at INR 260.50 on May 31, 2016. ii. The Company had made preferential allotment of its equity shares on three different instances during the Financial Years 2012-13, 2013-14 and 2014-15. The Company had made profits of INR 26.40 Lakh, INR 79.80 Lakh and INR 99.20 Lakh for the FY 2012-13, 2014-15 and 2015-16 respectively and incurred a loss of INR 8.52 Crore for the FY 2013-14. During the investigation period, no major corporate announcements except for declaration of financial results, allotment of shares on preferential allotment etc., were made by the Company. iii. The trading in the scrip of the Company was under suspension during the period of January 07, 2015 to December 08, 2015, due to surveillance measure
Order in the matter of Shantanu Sheorey Aquakult Ltd. Page 3 of 36 The said 4028 trades were executed by the Noticees during the period of February 01, 2016 to May 31, 2016 and during such time, the price of the scrip of the Company had increased from INR 141 to INR 260.50. In the aforestated period, the Noticees in total had purchased 44.07 Lakh shares, which was 55.39% of the total market volume of 79.55 Lakh shares. viii. Further, out of these 4028 trades, in 1252 trades, the Noticees had placed their respective buy orders at prices higher than the sell order prices available on the market platform. In the said 1252 trades, the Noticees have purchased a total quantity of 36.38 Lakh shares only, when the total quantity of shares available for sale from the sellers was 98.98 Lakh shares.
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Source: SecMarx — sebi:WTM/SM/IVD/32/2021-22. 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.