sebi:WTM/SM/IVD/ID8/8432/2020-21
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Facts / Headnote
Charges against Noticees no. 1 to 18 established for violating PFUTP Regulations, 2003; Noticees no. 19 and 20 found not strictly in violation but warned; demat accounts of Noticee no. 3 to be frozen and closed; Noticees no. 19 and 20 warned to be careful in future.
Provisions invoked
- s. 11
- s. 19
Regulations
- Reg. 3
- Reg. 4
- Reg. 4(1)
- Reg. 200
- Reg. 3(a)
Holding
Noticees no. 1 to 18 were found to be an interconnected group that executed manipulative trades contributing to positive LTP in the scrip of AVIL during Patch-1, in violation of regulations 3(a)-(d) and 4(1), 4(2)(a), 4(2)(e) of the PFUTP Regulations, 2003. Noticees no. 19 and 20 were held not to have strictly violated the PFUTP Regulations but were warned to be careful in future.
Full text
Order in the matter of Aadhaar Ventures India Limited Page 2 of 35 (The entities mentioned above are individually known by their respective name or Noticee no. and collectively referred to as “Noticees”)
Order in the matter of Aadhaar Ventures India Limited Page 3 of 35 In this regard, the detail of price volume movement in the scrip of AVIL in the period before Investigation, during the Investigation Period and after Investigation Period is tabulated below: Table-1: Price-Volume movement in scrip of AVIL Period Dates Open (₹) Close (₹) Low (Date) High (Date) Avg. no. of (shares) traded daily during the period. Pre Investigation Period 01/12/2008- 31/12/2008 Price 1.60 1.79 1.60 (01/12/2008) 2.00 (12/12/2008) 45,193 Volume 3085 3300 2500 (29/12/2008) 2,53,300 (23/12/2008)
Order in the matter of Aadhaar Ventures India Limited Page 4 of 35 3. In the course of investigation conducted by SEBI, while analyzing the price and trade movement in the scrip of AVIL, following facts, inter alia, came to light: Patch-1 (January 01, 2009 to August 1, 2011) a) During Patch-1, the price of the scrip opened at ₹1.80, reached a high of ₹87.10 and closed at ₹77.15. During this Patch 1, the scrip of AVIL witnessed a sharp price rise of 4738.89%, with a net positive Last Traded Price (hereinafter referred to as “(+) LTP / positive LTP”) of ₹75.35 and a market positive LTP of ₹5704.21 although inadvertently mentioned as ₹1472.63 at para 3 on page no. 4 of the SCN. This inadvertent mistake in the SCN is borne out of the fact that although as per the last column of Table-2 on page 7 of SCN, the total market positive LTP is mentioned as ₹5704.21, erroneously the said figure is mentioned as ₹1472.63 in SCN. Further, in last column of Table no. 4 on page no. 8 of the SCN, it is stated that the (+) LTP contribution of ₹298.52 by Noticee no. 1 to 18 is 5.23% of the total (+) LTP, which is possible only when the total (+) LTP is 5704.21 and not 1472.63, as inadvertently mentioned in the SCN. Therefore, such an apparent typographical mistake needs to be ignored and the total market positive LTP in this case should be taken as ₹5704.21 for Patch-1. b) Investigation revealed that, during Patch-1, a group of 79 entities had either traded in the scrip of AVIL or were connected
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Source: SecMarx — sebi:WTM/SM/IVD/ID8/8432/2020-21. 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.