Court :
SEBI
Brief :
UNDER SECTION15-I OF SECURITIES AND EXCHANGE BOARD OF INDIA ACT, 1992 READ WITH RULE 5 OF SEBI (PROCEDURE FOR HOLDING INQUIRY AND IMPOSING PENALTIES) RULES, 1995
Citation :
ADJUDICATION ORDER NO. PM/NR/2020-21/9151-9159
BEFORE THE ADJUDICATING OFFICER
SECURITIES AND EXCHANGE BOARD OF INDIA
ADJUDICATION ORDER NO. PM/NR/2020-21/9151-9159
UNDER SECTION15-I OF SECURITIES AND EXCHANGE BOARD OF INDIA ACT, 1992 READ WITH RULE 5 OF SEBI (PROCEDURE FOR HOLDING INQUIRY AND IMPOSING PENALTIES) RULES, 1995
In respect of
|
1. Accurate Buildwell Pvt., Ltd., (PAN: AAGCA4053L) |
2. Vishal Yadav (PAN: AJKPY8234D) |
|
3. Century Buildmart Pvt., Ltd., (PAN: AADCC2898Q) |
4. Amit Kumar Saxena (PAN: DWOPS8186Q) |
|
5. Pawan Kumar Kaul (PAN: APJPK8855K) |
6. Santosh Kumar (PAN: AEKPK6751Q) |
|
7. Sunila Rai Verma (PAN: ASPPV7875F) |
8. Ashvin Verma (PAN: AKFPV6256L) |
|
9. Stallion Trading Co., (Proprietor: Ms. Sapna) (PAN: DRUPS8079D) |
(The aforesaid entities are hereinafter referred to individually by their respective names/serial numbers or collectively as "the Noticees")
In the matter of Eco-Friendly Food Processing Park Ltd.,
1. Securities and Exchange Board of India (hereinafter referred to as "SEBI") conducted an investigation in the scrip of Eco Friendly Food Processing Park Ltd., (hereinafter referred to as "ECO" / "Company") to ascertain whether there was any violation of the provisions of Securities and Exchange Board of India Act, 1992 (hereinafter referred to as "SEBI Act, 1992") and SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 2003 (hereinafter referred to as "SEBI (PFUTP) Regulations") by certain entities, who are connected to each other, in the scrip of ECO during the period January 14, 2013 to July 31, 2015 (hereinafter referred to as "Investigation Period"/"IP")
2. Based on the variance in the quantum of trading volumes, the price movement of the scrip during the IP and the stock split, the investigation period was split into three patches. The price & volume details of the scrip ECO during the three patches of the investigation period are tabulated hereunder:
|
Patches |
Period |
Price Movement in Rs. |
Avg. of (shares) traded daily during the period |
||||
|
From |
To |
Open |
High |
Low |
Close |
||
|
Patch-1 – Price rise (pre-split) |
14/01/2013 |
07/01/2015 |
24.60 |
640.25 |
21.10 |
517.05 |
30,368 |
|
Patch-2 – Price fall (post-split) |
08/01/2015 |
15/04/2015 |
51 |
51 |
20.95 |
23.70 |
3,65,589 |
|
Patch-3 Price rise (post-split) |
17/04/2015 |
31/07/2015 |
23.50 |
50.25 |
22.50 |
48.40 |
5,78,054 |
3. It was observed that during Patch 1 of the investigation period, the price of the ECO scrip opened at Rs. 24.60 on January 14, 2013, touched a high of Rs. 640.25 on April 15, 2014 and closed at Rs. 517.05 on January 7, 2015 with an average traded volume of 30,368 shares. On January 8, 2015, the Company carried out stock split in the scrip in the ratio of 10:1. The trading volumes were high in the scrip during Patch 2 and Patch 3 of the investigation period. The investigation revealed that the Noticees viz., Accurate Buildwell Pvt., Ltd., (Noticee 1), Vishal Yadav (Noticee 2), Century Buildmart Pvt., Ltd., (Noticee 3), Amit Kumar Saxena (Noticee 4), Pawan Kumar Kaul (Noticee 5), Santosh Kumar (Noticee 6), Sunila Rai Verma (Noticee 7), Ashvin Veerma (Noticee 8) and Stallion Trading Co., (Proprietor: Ms. Sapna) (Noticee 9) who were connected to each other had manipulated the price of ECO by way of creating New High Price (NHP) by trading amongst themselves. The investigation found that the Noticees who traded amongst themselves continuously had contributed to Rs. 79.45 to the total NHP (i.e., 12.90% of total NHP) during the period of investigation. Therefore, it is alleged that the Noticees have violated the provisions of Regulations 3(a),(b),(c),(d),4(1), 4(2)(a) and (e) of SEBI (PFUTP) Regulations.
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