{"id":252159,"date":"2021-08-03T11:00:34","date_gmt":"2021-08-03T05:30:34","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=252159"},"modified":"2021-08-03T09:17:02","modified_gmt":"2021-08-03T03:47:02","slug":"sebi-3","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2021\/08\/03\/sebi-3\/","title":{"rendered":"SEBI | Deliberate act of creating fictitious volumes distorting market equilibrium suffers a monetary penalty even in the absence of disproportionate gains"},"content":{"rendered":"<p style=\"text-align: justify;\"><strong>Securities and Exchange Board of India (SEBI):<\/strong> Maninder Cheema, Adjudicating Officer, while affirming the violations under Regulation 3 (a), (b), (c), (d) and 4 (1) and 4(2)(a) of PFUTP Regulations, imposed a monetary penalty of \u00a0Rupees Five Lakh, under Section 15-I of SEBI Act.<\/p>\n<p style=\"text-align: justify;\">In the instant case, it was alleged that the Noticees executed reversal trades in the scrip which were non-genuine in nature and carried out without any change of beneficial ownership merely to generate artificial volume in the scrip which created a misleading impression of liquidity in the scrip and may have induced investors to buy or sell in illiquid scrip.<\/p>\n<p style=\"text-align: justify;\">The Tribunal while affirming the allegations held that, \u201cthe material on record has not brought out any disproportionate gain made by the Noticees or loss caused to investors by the Noticees. However, the Noticees carried out a deliberate act of creating fictitious volumes in the scrip over a period of 40 days which may have induced several innocent investors to buy the stock at the time. In view of the above, taking into account the facts and circumstances of this matter, I find that a penalty of Rs.5,00,000\/- (Rupees Five Lakh only) each on Noticees 1 to 10 under Section 15HA of the SEBI Act will be commensurate with the violations committed by them\u201d.[Ram Minerals and Chemicals Limited, In re, Order\/MC\/HP\/2021-2022\/12835-12844, decided on 30-07-2021]<\/p>\n<hr \/>\n<p style=\"text-align: justify;\"><span style=\"color: #008000;\">Agatha Shukla, Editorial Assistant has reported this brief.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Securities and Exchange Board of India (SEBI): Maninder Cheema, Adjudicating Officer, while affirming the violations under Regulation 3 (a), (b), (c), (d) 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bans Mehul Choksi from securities market for 10 years and imposes a penalty of Rs. 5 crores for indulging in fraudulent and unfair trade practices","author":"Editor","date":"November 1, 2022","format":false,"excerpt":"\u00a0 \u00a0 Securities and Exchange Board of India: Mehul C. Choksi has been restrained from buying, selling or dealing in securities and is prohibited from accessing securities market for a period of 10 years with a penalty of Rs. 5 crores for indulging in fraudulent and unfair trade practices. Facts:\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"SEBI","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/03\/MicrosoftTeams-image-111-4.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/03\/MicrosoftTeams-image-111-4.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/03\/MicrosoftTeams-image-111-4.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/03\/MicrosoftTeams-image-111-4.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/03\/MicrosoftTeams-image-111-4.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":245173,"url":"https:\/\/www.scconline.com\/blog\/post\/2021\/03\/08\/fraudulent-trading-practices\/","url_meta":{"origin":252159,"position":1},"title":"SEBI | SEBI pulls up entities for fraudulent trading practices: Imposes \u20b9 80 lakh fine","author":"Editor","date":"March 8, 2021","format":false,"excerpt":"Securities and Exchange Board of India (SEBI): Maninder Cheema, Adjudicating Officer, imposed a total fine of Rs 80 lakh on eight entities for indulging in fraudulent trading activities in the shares of PMC Fincorp Ltd. It was found by the regulator, that the entities created artificial demand in the PMC\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":252779,"url":"https:\/\/www.scconline.com\/blog\/post\/2021\/08\/17\/sebi-zee-insider-trading-interim-ex-parte-order-bars-15-entities\/","url_meta":{"origin":252159,"position":2},"title":"SEBI | ZEE insider trading: Interim ex-parte order bars 15 entities","author":"Editor","date":"August 17, 2021","format":false,"excerpt":"Securities and Exchange Board of India (SEBI): Madhabi Puri Bach, (Whole Time Member) considering the impending danger to the interests of the investors passed an interim ex-parte order restraining all the 15 entities including Zee Entertainment Enterprises Ltd (ZEEL) from buying, selling or dealing in securities, either directly or indirectly,\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":255417,"url":"https:\/\/www.scconline.com\/blog\/post\/2021\/10\/11\/calibrated-efforts-cancelling-out-the-chance-of-coincidence-of-matching-trades-in-illiquid-scrip-does-not-go-scot-free\/","url_meta":{"origin":252159,"position":3},"title":"SEBI | Calibrated efforts cancelling out the chance of coincidence of matching trades in illiquid scrip does not go scot free-Restricted from the market for manipulation","author":"Editor","date":"October 11, 2021","format":false,"excerpt":"Securities and Exchange Board of India (SEBI)-Madhabi Puri Buch, Whole Time Member, while exercising powers under Section 19 read with Sections 11(1), 11(4) and 11B (1) and 11B(2) of the Securities and Exchange Board of India Act, 1992 restricted the Noticees involved in manipulation of the scrip. In the present\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":196000,"url":"https:\/\/www.scconline.com\/blog\/post\/2018\/05\/14\/suspension-of-trading-delisting-of-company-only-mitigating-factors-not-grounds-to-escape-liability-for-flouting-sebi-circulars\/","url_meta":{"origin":252159,"position":4},"title":"Suspension of trading, delisting of company only mitigating factors, not grounds to escape liability for flouting SEBI circulars","author":"Saba","date":"May 14, 2018","format":false,"excerpt":"Securities Appellate Tribunal, Mumbai: The\u00a0SAT, Mumbai has held that delisting of a company is not a tenable ground to be held unaccountable for non-compliance with SEBI circulars. In\u00a0Pashupati\u00a0Cables Ltd. v. 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