Sud bought about 1.51 lakh shares of the company taking her stake in SR Industries to 5.39% from 4.19% but did not inform SEBI as mandated
Mumbai: Market regulator Securities and Exchange Board of India (SEBI) has settled the case against one Meenakshi Sud after she made a payment of about Rs7.24 lakh for allegedly not making the requisite disclosures regarding her shareholding in SR Industries Ltd.
SEBI said that it is settling the matter against Sud, "without admitting or denying the guilt on the part of the Noticee (Sud) to the finding of fact or conclusion of law ".
The regulator had observed that while trading in the scrip of SR Industries through trading member LSE Securities, Sud purchased nearly 7.52 lakh shares amounting to 5.98% stake of the company and sold 24,726 shares representing 0.19% shareholding.
It was alleged that as on 8 April 2011, Sud had acquired about 1.51 lakh shares of the company due to which her stake in the company increased from 4.19% to 5.39%.
According to the norms, as her shareholding crossed 5%, she was required to make disclosures to the company and to the concerned stock exchange.
SEBI had alleged that Sud did not make the necessary disclosures.
While the adjudication proceedings were in progress, Sud made an application for consent order in June, this year.
Subsequently, she proposed settlement charges of about Rs7.24 lakh under SEBI's consent order mechanism.
A High Powered Advisory Committee (HPAC) considered the consent terms and recommended the case for settlement on payment of the said amount.
The recommendations of HPAC were also approved by the panel of Whole Time Members of SEBI.
The consent order regarding the case was passed on 3 December 2012.
SAT while upholding the findings by SEBI, said no action has been initiated by the regulator against the counter parties (MKJ Group) who provided finance to Shraddha Stock Broking for entering into the trades in question
Mumbai, Dec 4 (PTI) The Securities Appellate Tribunal has reduced the penalty on Shraddha Stock Broking to Rs3 lakh from Rs18 lakh imposed by Securities and Exchange Board of India (SEBI) in a case related to alleged fraudulent trading in shares of Bhansali Engineering Polymers, reports PTI.
Shraddha Stock Broking had allegedly indulged in self-trades in shares of Bhansali Engineering Polymers which were in the nature of cross trades with entities of MKJ group.
The stock broker had taken large amounts of interest-free loan from these entities for trading in the scrip and is said to have made a profit in the deal, SEBI had alleged.
However, in its order dated 3rd December, SAT while upholding the findings by SEBI, said no action has been initiated by the regulator against the counter parties (MKJ Group) who provided finance to Shraddha Stock Broking for entering into the trades in question.
"In a way, culpability of the counter parties (MKJ Group) of the appellant who provided the finance is more as compared to the culpability of the appellant (Shraddha Stock Broking) ," SAT said.
The case relates to a probe by SEBI in shares of Bhansali Engineering Polymers during 8th May and 8 October 2003.
SEBI said it had found that the counter's volumes were fluctuating sharply and the scrip was touching the upper circuit limit regularly.
The investigation report revealed, SEBI said, that two trading members namely, TCP Stock Brokers and KCG Investment and Finance had highest concentration of 25.13% and 18.41% respectively in gross purchase at the counter.
Shraddha Stock Broking was a major client who dealt in the shares through these trading members, it had said.
Shraddha Stock Broking also purchased 79,395 shares and sold 50,000 shares through KCG which amounted to 14.11% of total market volume of 55.95 lakh shares.
SEBI had alleged that the stock broker was involved in self-trades which were in the nature of cross trades with entities, mainly MKJ Enterprises, Toplight Vinmay, Shankar, Eminent Sales, Sanatan Merchants, Sweet Solution and Mantu Housing and Projects.
Shraddha Stock Broking had taken large amount of interest free loan from these entities for trading in the scrip and is said to have made a profit of Rs1.43 crore in the deal, SEBI had said.
SEBI observed that ICL and its former MD Sanghavi made false and misleading statements in the quarterly results ending December 2003, with positive outlook which would induce the investors to deal in the company shares
Mumbai: Market regulator Securities and Exchange Board of India (SEBI) has imposed a ban on Innovision e-Commerce Ltd (ICL) and its former managing director from securities market for two years for alleged fraudulent trading practices as well as false disclosures regarding shareholding, reports PTI.
SEBI in its order said it is restraining ICL and its former MD Akshay Pravin Sanghavi "from accessing the securities market and also prohibit them from buying, selling or otherwise dealing or associating with the securities market in any manner and in any capacity, for a period of two years".
The BSE had informed SEBI the prices and volumes in the scrip of ICL had increased prior to announcement of the company's quarterly results ending December 2003.
SEBI said in a probe in the shares of the company during 10 November 2003 to 28 January 2004, it was observed that that in its quarterly results ICL had shown manifold improvement in its performance.
The regulator also found that Sanghavi had transferred one crore shares of ICL to Right Finstock through off market transaction in January 2004, about 18 days before the announcement of the results.
After receiving these shares of ICL, Right Finstock started offloading them in the market. It was also said that there was an increase in the trading volume in the shares of ICL pursuant to the announcement of its quarterly results.
The regulator alleged that ICL had made false disclosures on BSE about its shareholding pattern for the quarter ending September 2003, December 2003 and March 2004.
SEBI said it had observed that ICL and Sanghavi had made false and misleading statements in the quarterly results ending December 2003, with positive outlook which would induce the investors to deal in securities of ICL.
Further, the regulator said it noted that these incidents "clearly show an orchestrated device, plan or artifice on part of ICL and Sanghavi to defraud in connection with dealing with securities of ICL ".