sebi:WTM/TCN/ID3/92/02/2007
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Facts / Headnote
Restrained from dealing in securities in any manner for a period of two months
Provisions invoked
- s. 11B
- s. 11
- s. 11(4)
- s. 19
- s. 81
Regulations
- Reg. 4
- Reg. 11
- Reg. 12
- Reg. 4(b)
Parties
- M/s. Neha Equisearch Private Limited
Holding
M/s. Neha Equisearch Private Limited was held guilty of violating Regulation 4(b) of the FUTP Regulations, 1995 for causing false volumes and creating an appearance of active trading in the scrip of Spanco Telesystems and Solutions Limited. It was restrained from dealing in securities in any manner for a period of two months.
Full text
Home » Enforcement » Orders » Orders of Chairman/Members Enforcement Enforcement▼ ORDER UNDER SECTION 11(4) READ WITH SECTION 11(B) OF THE SECURITIES AND EXCHANGE BOARD OF INDIA ACT, 1992 AGAINST M/s. NEHA EQUISEARCH PRIVATE LIMITED, IN THE MATTER OF M/s. SPANCO TELESYSTEMS AND SOLUTIONS LIMITED WTM/TCN/ID3/ /2007
8. It was observed that there was an effort to create artificial volume in the scrip of STSL during the period of investigation, to influence the terms and conditions of the prefere allotment mentioned hereinabove. It was alleged that a set of brokers/members of BSE have traded in the scrip of STSL and indulged in creating artificial volumes ther influencing the price of the said scrip. Accordingly, it is alleged that volumes in the scrip of STSL were high as compared to the volumes prior to and after investigation period. price of the scrip on 01.10.00 was Rs.50/- with a volume of 1,000 shares. The price had reached its peak of Rs.54.95/- on October 06, 2000 and the number of shares traded w 2,300 after which the price had come down to a low of Rs.18.80 with 14, 660 shares being traded on April 20, 2001. Further, it was noticed that the price of the scrip had sta rising and by June 29, 2001; it had reached Rs. 44.55/- with a trade volume of 61,460 shares. After this period, the price of the scrip again started falling and at the end of investigation period i.e., on July 31, 2001, the price of the scrip was hovering around Rs. 26/- whereas traded volume reported at the exchange on the same day was 7,600 share
It can be observed from the above table that after obtaining 10,000 shares from NSBL on May 17, 2001 Ms Rekha H. Vakharia transferred 5,224 shares to accounts of clients and thus contributing an upsurge in the trading volume of the scrip during the period of May 2001 to June 2001. It is alleged that NEPL was interested in creating vo the scrip of STSL through these clients.
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Source: SecMarx — sebi:WTM/TCN/ID3/92/02/2007. 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.