sebi:WTM/SM/IVD/ID2/8811/2020-21
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Facts / Headnote
Noticees found in violation of SEBI (PFUTP) Regulations, 2003; restrained from securities market for 1 year (Noticees 1 & 2) and 6 months (Noticee 3); directed to disgorge unlawful gains with 12% simple interest
Provisions invoked
- s. 11
- s. 19
- s. 12
- s. 13
- s. 16
- s. 18
- s. 29A
- s. 17
Regulations
- Reg. 4
- Reg. 3
- Reg. 4(1)
- Reg. 4(2)
- Reg. 3(a)
Parties
- Chetan Dogra (Noticee no. 1)
- Chetan Dogra HUF (Noticee no. 2)
- Noticee no. 3 (company wherein Noticee no. 1 was a Director)
Holding
The Noticees were found to have executed manipulative, fraudulent and unfair trades in the scrips of Urja Global Limited and Sampada Chemicals Limited through synchronized trades, reversal trades and self-trades, in violation of Regulation 3(a)-(d) read with Regulation 4(1) and 4(2)(a) and (g) of SEBI (PFUTP) Regulations, 2003. Noticees 1 and 2 were directed to jointly and severally disgorge ₹2,14,85,115 and Noticee 3 to disgorge ₹18,05,667, along with 12% simple interest, and were restrained from the securities market for 1 year and 6 months respectively.
Full text
Order in the matter of Urja Global Limited and Sampada Chemicals Limited Page 2 of 31 the scrips of Urja and Sampada during pre-Investigation Period, Investigation Period & post-Investigation Period were found to be as under: Table No. 1 In the scrip of Urja Period Date
Order in the matter of Urja Global Limited and Sampada Chemicals Limited Page 3 of 31 01.07.2010 to 30.9.2010 Volu me 500 3947 401 (18.08.2010) 17338 (28.09.2010) Investigation Period 01.10.2010 to 21.03.2011 Price 279.00 410.00 134.75 (31.12.2010) 498.00 (24.11.2010) 38898 Volu me 15668 98020 1 (07.12.2010) 476712 (31.12.2010) After Investigation Period 22.03.2011 to 21.06.2011 Price 412.05 28.05 453.25 (25.03.2011) 28.05 (21.06.2011) 33842 Volu me 102733 1540 62 (04.04.2011) 601473 (06.06.2011)
Order in the matter of Urja Global Limited and Sampada Chemicals Limited Page 4 of 31 b) Noticee no. 2 (Chetan Dogra HUF) and Noticee no. 1 (Chetan Dogra) were the top 2 buyers and sellers in the scrip of Urja during the Patch A of the Investigation Period. c) The Investigation has also noticed that during the Patch A, the CDG had contributed to the buy volume to the extent of 66.03% and to the sell volume to the extent of 60.76%. It was further revealed that the suspected entities had purchased and sold 966318 shares amongst themselves which constituted 60.62% of the total buy volume of the suspected entities and 65.86% of the total sell volume of the suspected group entities which again, amounted to 40.03% of the total market volume during the Patch A in the scrip of Urja during the Investigation Period. It was also noticed that the above noted entities have indulged in execution of synchronized trades, reversal trades and self-trades. d) In this regard, it was further observed during the Investigation that the volume of the synchronized trades entered into by Noticee no. 1 and 2 to the total market volume of the scrip during the said patch was 23.02%. Similarly, these two Noticees (Noticee no. 1 and 2) while entering into reversal trades have accounted for 9.77% of the total market volume of the scrip during this period. These two Noticees have entered into 79 reversal trades on 19 trading days out of 33 trading days (57.58 % of trading days during the period). e) Through
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Source: SecMarx — sebi:WTM/SM/IVD/ID2/8811/2020-21. 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.