SEBI issues FAQs on Investment Advisers Regulations, 2013 |
SEBI issues FAQs on Investment Advisers Regulations, 2013Click here to read more. |
Identifies tax evasion artifice in abnormal scrip price shoot up |
SEBI vide an ex-parte ad-interim order suspends trading in Kamalakshi Finance Corp. Ltd's (KFCL) securities, restrains its promoters, directors, connected/ related entities from accessing securities market, also restrains suspected persons/ entities from dealing in KFCL's scrip; States entities had "the intention of using securities market system to artificially increase volume and price of the scrip for creating bogus non taxable (i.e. LTCG) profits", requiring detailed investigation; Observes that during examination period , KFCL's scrip price increased from Rs 10.20/- to Rs.489/- (increase of 4,694%) with total traded volume of only 1,385 shares against total 2.84Crore shares; States that despite such insignificant volume, price rise is very significant which is not supported by KFCL's fundamentals; Holds "schemes, plan, device and artifice employed in this case apart from being a possible case of tax evasion, which could be seen by the concerned law enforcement agencies separately, is prima facie also a fraud on the securities market in as much as it involves manipulative transactions in securities and misuse of the securities market"; Relies on SAT Observations in Classic Credit Ltd. v. SEBI:SEBI |
Penalises 56 entities for manipulative trade practices affecting normal price discovery mechanism |
SEBI imposes penalty of 3.03 Cr on 56 entities for fraudulent/ manipulative trading in shares of Well Pack Papers & Containers Ltd. (WPPCL) thereby violating SEBI (Prohibition of Fraudulent and Unfair Trade Practices) Regulations, 2003; Also penalises stock broker for executing such manipulative self trades on client's behalf, thereby violating Code of Conduct prescribed under Brokers regulations; States "this kind of activity seriously affects the normal price discovery mechanism on the stock exchange platform. People who indulge in manipulative, fraudulent and deceptive transactions should be suitably penalized for the said acts of omissions and commissions"; Observes that entities by trading amongst themselves indulged in synchronized trading on numerous occasions, resulting in no change of beneficial ownership & creating artificial volume in WPPCL's scrip which gives misleading appearance of trading; Rejects noticees defence that they had no relationship with each other, states "such pattern of trading cannot be executed without prior meeting of minds and prior understanding"; Relies on SC observations in SEBI v. Shri Ram Mutual Fund:SEBI |
Orders fresh SEBI adjudication for 'insufficient' show cause notice issued to appellants |
SAT sets aside SEBI Adjudicating Officer's (AO) orders holding appellants liable for violation of SEBI (Prevention of Fraudulent and Unfair Trade Practices) Regulations, 2003 for executing manipulative self trades; Observes that SEBI AO issued incomplete Show Cause Notice (SCN) by not including relevant allegations of market manipulation and even without considering appellant\'s defence; Observes that on prima facie finding, appellants indulged in manipulative trades, but states that it will not be in interest of justice to discharge them from alleged violations due to improper handling of entire adjudication proceedings, remands matter back to SEBI for fresh adjudication by some other AO:SAT |
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