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TMI Blog2020 (7) TMI 167X X X X Extracts X X X X X X X X Extracts X X X X ..... or short) dated November 30, 2017. By the said order 16 entities are found to have violated the provisions of Regulations 3(a), (b), (c) and (d) and Regulation 4(1), 4(2)(a) and (e) of SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003 ('PFUTP Regulations' for short). Therefore, varying amount of monetary penalties in the range of Rs. 5 lakh to Rs. 10 lakh have been imposed on them under section 15HA of the SEBI Act, 1992. 2. Basic facts relating to the matter are the following. Based on certain suspicious trading in the scrip of M/s. Aarya Global Shares and Securities Ltd. ('Aarya' for short) SEBI conducted an investigation relating to the trading in the scrip of Aar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... were represented by authorized representatives. After taking into account the replies filed by the noticees and the statements made by the authorized representatives the order impugned in these appeals was passed on November 30, 2017. 4. Shri Nishant Upadhyay, the learned counsel for the appellant raised a preliminary objection to the impugned order because of substantial delay in the proceedings. It was contended that though the period of investigation relate to May 2010 to December 2011 the show cause notice was issued only on May 10, 2016 and no reason is given either in the show cause notice or in the impugned order for such considerable delay. Therefore, it was contended that this Tribunal's order in respect of Ashok Shivlal Rupa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y often Rs. 3 to Rs. 5; in many cases no contribution to NHP; the number of trades involved is very small - all in single digits - and in any case there is no finding for the Patch - 2 and Patch - 3 of the investigation period. In any case, it was contended that for every scrip there will be LTP, NHP and a first trade and therefore these are no conclusive evidence relating to price, volume or any other manipulation as the appellants had been just trading in the scrip like any other investors as the appellants found the scrip to be beneficial for investment. Further, the fact that some of the appellants are related and staying together is not a ground to hold the appellants guilty of violating PFUTP Regulations as held in Tribunal's orde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t that the appellants did not provide any meaningful replies in their statement and simply stated that they did not provide any contact number in the KYC forms etc. because it was not a requirement and in any case usage of a phone number is not sufficient to prove any involvement in insider trading. However, during personal hearing also many of the appellants sought adjournment and only authorized representatives of some of them appeared for the same. Effectively, it was contended that the noticees did not given reasonable answers to the queries raised by AO though they were given a number of opportunities. It was also submitted that all the noticees except notice no. 14 furnished more or less same replies such as "during the time of openin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uted to their trading pattern. It is a fact that new LTP, NHP and a few first trades in the scrip have been created/done by these appellants which would prima facie points towards a manipulative effort. At the same time, it is on record that the scrip was progressively doing well during the investigation period with substantial increase in both prices and volumes. No connection with the promoters of the Company or with the Company itself has been attributed to the appellants. There is no evidence or even any discussion on any fund transfer between the appellants or the appellants with any other entities in the absence of which motive for a collusive or manipulative effort becomes blunt. Moreover, when a group of 16 entities themselves becom ..... X X X X Extracts X X X X X X X X Extracts X X X X
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