sebi:WTM/SM/IVD/ID6/8384/2020-21
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Facts / Headnote
Noticee Nos. 1 to 9 held to have violated PFUTP Regulations for manipulative trades during Patch-1 and Patch-2; directions issued with immediate effect
Provisions invoked
- s. 19
Regulations
- Reg. 4
- Reg. 2(c)
- Reg. 3
- Reg. 4(1)
- Reg. 3(a)
Parties
- Aniruddh Parashar (Noticee No.1)
- Rakesh Ramsingh Saini (Noticee No.2)
- Akash Sukhdev Swami (Noticee No.3)
- Santoshkumar Satyanarayan Podar (Noticee No.4)
- Kamal M. Tibrewala (Noticee No.5)
- Subhash D. Bhatiwada (Noticee No.6)
- Noticee No.7
- Noticee No.8
- Noticee No.9
Holding
Noticee Nos. 1 to 9 were held not to be genuine sellers and to have manipulated the price of Maa Jagdambe Tradelinks Ltd. by executing small-quantity sell trades matching pending buy orders above LTP, in violation of regulation 3(a), (b), (c), (d) and regulation 4(1), 4(2)(a) & (e) of the SEBI (PFUTP) Regulations.
Full text
Order in the matter of Maa Jagdambe Tradelinks Ltd. Page 2 of 47 three patches, viz., Patch- 1: May 13, 2013 to January 08, 2014; Patch -2: January 09, 2014 to May 19, 2014; and Patch-3 : May 20, 2014 to July 31, 2015 out of which, the findings pertaining to the connections amongst the Noticees and their manipulative trades in the scrip of MJTL during the Patch-1 and Patch-2, and their as highlighted in the subsequent paragraphs have prima facie become the subject matter of the present proceedings.
Order in the matter of Maa Jagdambe Tradelinks Ltd. Page 3 of 47 ₹98.40(unadjusted to split price ₹ 492) with a net LTP of ₹65.25(unadjusted to split ₹326.25)and a market positive LTP of ₹168.40 (unadjusted to split ₹ 842). The total traded volume in the scrip was 4977939 (pre-split volume during Patch-1 was 13525 shares) shares during the said period. vii. The price of the scrip reached its highest level of ₹107.80 (unadjusted to split price ₹ 539.00) on March 02, 2015 which took the market capitalization value of the Company to ₹845.42 Crore. The said increase in the price of the scrip was viewed quite abnormal as such an increase was not supported by any corporate announcement (s) or by any noteworthy performance of the Company during the three relevant Financial Years referred to above. viii. The details of the price, volume etc., noticed in the scrip, across the three patches of the investigation period are depicted in the following table:
Order in the matter of Maa Jagdambe Tradelinks Ltd. Page 4 of 47 ix. It was noticed in the investigation that Noticee nos. 1 to 9 executed sell transaction in small quantities of shares of the Company and such trades of the Noticees were at prices higher than the LTP. The Noticee nos. 1 to 6 were allegedly connected amongst themselves based on their employment, common directorship and fund transfers with certain entities. Some of the details/factors based on which the aforesaid entities were observed to be connected, are illustrated in the following points. x. With respect to the connection of Noticee no. 6 to the Company, it was noticed that on July 23, 2013, an amount of ₹1.85 Crore was transferred by the Company to A1 Century Trades Ltd. (earlier known as Goldmine Fintrade Ltd.) (hereinafter referred to as “A1 Century”). Noticee no. 6 was one of the Directors of the said company, i.e., A1 Century Ltd. xi. Further, on July 26, 2013, the Company had transferred an amount of ₹50.00 Lakh to Ridhi-Hi Fashion Private Limited (hereinafter referred to as “Ridhi”). It was also noted that the Company and Ridhi shared a common Director viz., Mr. Pawan Kumar Chaudhary, during the period of February 14, 2014 to October 01, 2014. Based on the findings in the investigation, it has been noticed that Ridhi was connected to the Company through a common Director viz., Mr. Pawan Kumar Chaudhary. xii. One company namely, Sumangal Commodity Private Limited (hereinafter referred to as “Sumangal
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Source: SecMarx — sebi:WTM/SM/IVD/ID6/8384/2020-21. 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.