sebi:WTM/SR/IVD/ID-3/20/02/2015
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Facts / Headnote
Charge of self-trades held proved against Noticees Nos. 1-8; Noticees Nos. 1-8 restrained from accessing securities market and prohibited from buying, selling or dealing in securities for 2 years; Noticees Nos. 1-8 and 10-42 warned to be cautious and exercise due care; proceedings against Noticee No. 9 (Kishore B Chauhan) abated/disposed without directions due to death on May 29, 2013.
Provisions invoked
- s. 11
- s. 19
Regulations
- Reg. 11
- Reg. 3
Holding
SEBI held the self-trade charge conclusively proved against Noticees Nos. 1-8 in the scrip of Crazy Infotech in violation of Regulations 3(a), 4(1), 4(2)(a) & (g) of PFUTP Regulations, 2003 and restrained them for two years, while the reversal/circular/synchronized/off-market manipulation charges against Noticees Nos. 1-42 were not held proved to the required standard and were disposed of by administrative warning, and the case against deceased Noticee No. 9 was abated.
Full text
Page 2 of 27 2.2 Investigation found that a group of 823 connected entities (connected through common telephone number, address, off market transaction, bank transactions and hereinafter collectively referred to as "connected entities" and individually by their names) were trading in the scrip during the investigation period in the manner of circular and reversed trades among themselves. Some of the connected entities were also found to have indulged in self trades during the investigation period. Details of these 823 connected entities along with their trading details during the investigation period and details of connections amongst a few of these entities were already given in the respective Show Cause Notices (SCN) sent to them.
Page 3 of 27 3.1 Out of the remaining 42 entities, 37 entities were alleged to have traded in both market and off- market and bought/sold at least 75,000 or more shares in market and/or in off-market during the investigation period in circular/reversal,/synchronized/ structured trades in connivance with other connected entities, which resulted in artificial volumes and rise in price of the scrip of Crazy Infotech. The remaining 5 entities were found to have indulged only in off-market transactions and were an important off-market link between the other connected entities trading in market, thereby completing the circular pattern of trading among themselves and creating artificial volume in the market. These five entities were selected based on criteria that they had either totally bought or sold 75,000 shares or more in the off-market trading in more than 10 instances.
Page 4 of 27 19. Balasaheb Jagannath Kamble AQUPK2396P 20. Bharat Shantilal Thakkar AAZPT9542R 21. Bhavarlal Sonaji Malvi AUXPM5267G
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Source: SecMarx — sebi:WTM/SR/IVD/ID-3/20/02/2015. 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.