9911796707
TMI Blog2018 (6) TMI 1737X X X X Extracts X X X X X X X X Extracts X X X X ..... HP without giving any justifiable reason, clearly justifies the inference drawn by the AO that the trades executed by the appellant were manipulative trades. As held by the Apex Court in the case of SEBI V/s Kishore R. Ajmera [ 2016 (2) TMI 723 - SUPREME COURT] in the absence of direct evidence, by taking into account immediate and proximate facts and circumstances surrounding the events on which the charges/allegations are founded it is open to an AO to arrive at a reasonable conclusion that the trades executed were manipulated trades. In the facts of the present case, in our opinion, no fault can be found with the decision of the AO that the trades executed by the appellant were manipulative trades and hence, the appellant was guil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e City Travel Solutions Limited ( Company for convenience) during the period from 27.07.2012 to 28.02.2013. During the said investigation period it was noticed that while the Bombay Stock Exchange Sensex moved from 16,839.19 to 18,861.54 registering an increase of 2022.35 points (12.01%), whereas the price of the scrip of the company moved from ₹ 10.19 to ₹ 187.40 registering an increase of ₹ 177.21 (1739.06%). 3. Investigation revealed that during the period from 16.01.2013 to 30.07.2013 appellant had purchased 157 shares of the company and sold 157 shares. It was also noticed that the scrip of the company was an illiquid scrip and out of purchase and sale of 157 shares, some of the trades of the appellant were self t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vestigation period. It is an illiquid scrip. Whereas during the same period Sensex had registered a growth of 12.01% only. Noticee bought 152 shares of OCTSL in 45 trades and these trades had the effect of net positive LTP of ₹ 85.35. It took 4062 trades in 48,48,281 shares of OCTSL to result in the increase of net LTP of ₹ 177.21 and Noticee s contribution in such increase was ₹ 85.35 through persistent trades in small quantity of 152 shares. Out of these trades as per table at para 2 above, Noticee contributed positive LTP of ₹ 87.25 in 25 trades itself through which he bought 77 shares. The price of the scrip went up exorbitantly without any change in the fundamentals of the company. Against market capitalization ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rnatively, it is submitted that the penalty may be reduced to the extent as this Tribunal deems it fit and proper. 8. We see no merit in the aforesaid contentions. 9. Facts recorded in paras 15 to 17 of the impugned order clearly establish that the trades executed by the appellant had the effect of net positive LTP of ₹ 85.35. Very fact that the appellant had indulged in self trades/ LTP/ NHP without giving any justifiable reason, clearly justifies the inference drawn by the AO that the trades executed by the appellant were manipulative trades. 10. As held by the Apex Court in the case of SEBI V/s Kishore R. Ajmera reported in (2016) 6 SCC 368, in the absence of direct evidence, by taking into account immediate and proximate ..... X X X X Extracts X X X X X X X X Extracts X X X X
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