sebi:WTM/SR/IVD/ID-4/71/09/2014
Facts / Headnote
ACPL restrained from accessing the securities market for eight years (credit given for period already served under interim order); directors restrained for three years; price manipulation charges under Regulation 4(2)(b) and (e) not established.
Provisions invoked
- s. 11
- s. 19
- s. 12A
Regulations relied on
- SEBI (PFUTP) Regulations, 2003 — 11
- SEBI (PFUTP) Regulations, 2003 — 3(a)
- SEBI (PFUTP) Regulations, 2003 — 3(b)
- SEBI (PFUTP) Regulations, 2003 — 3(c)
- SEBI (PFUTP) Regulations, 2003 — 3(d)
- SEBI (PFUTP) Regulations, 2003 — 4(1)
- SEBI (PFUTP) Regulations, 2003 — 4(2)(a)
- SEBI (PFUTP) Regulations, 2003 — 4(2)(b)
- SEBI (PFUTP) Regulations, 2003 — 4(2)(g)
Parties
- Acme Craft Pvt. Ltd.
- Mr. Jigar Jagdish Pandya
- Mr. Akash Ganachari
Holding
ACPL, along with connected entities, indulged in synchronized, circular and reversed trades in the scrips of Temptation, Bang, Confidence and Cals with no intention of transfer of beneficial ownership, in violation of Regulation 3(a)-(d) and Regulation 4(1), 4(2)(a), (b) and (g) of the PFUTP Regulations read with Section 12A(a)-(c) of the SEBI Act. However, the charge of price manipulation in the scrips of Bang and Cals under Regulation 4(2)(b) and (e) was not conclusively established against ACPL.
Full text
Page 2 of 23 SEBI. The preliminary examination of the trade data relating to these four scrips i.e. Temptation, Bang, Confidence and Cals, revealed inter-linkages among the 'connected entities', including ACPL, in the form of 'off-market' transactions as well as synchronized deals in the market. These 'connected entities' including ACPL were found to have traded in large concentration in these four scrips and a substantial portion of their trading amongst themselves in synchronized manner was found to have contributed to the increase in the market volume in these four scrips.
Page 3 of 23 which was communicated to them vide letter dated March 26, 2013. I observe that SEBI, vide letter dated March 26, 2013 advised the Noticees to indicate before April 15, 2013 whether they would like to avail the opportunity of personal hearing in the matter. I note that the Noticees, have neither submitted any reply nor availed the opportunity of personal hearing. From the above, it is observed that the Noticees have been provided with enough opportunity to submit their reply and to avail the opportunity of personal hearing. In view of this, I am constrained to proceed with the matter ex parte on the basis of the materials and information available on record.
Page 4 of 23 (b) use or employ, in connection with issue, purchase or sale of any security listed or proposed to be listed in a recognized stock exchange, any manipulative or deceptive device or contrivance in contravention of the provisions of the Act or the rules or the regulations made there under;
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Source: SecMarx — sebi:WTM/SR/IVD/ID-4/71/09/2014. 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.