The trading pattern of synchronized trades between the same parties over a sustained period or numerous days leads to the inference of meeting of minds between accused parties.
SAT while dismissing an Appeal held parties guilty of the violation of Regulations 3(a), (d) and Regulations 4(1) of SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003 for synchronized trades executed by the parties.
It was noted that the trades were placed wherein the buy and sell order were identical – were placed within a time gap of less than one minute- resulting in increased Last Trade Price by Rs. 11.60 constituting 12.86% of the total market value.
Evidences intention of parties to create a misleading appearance of trades in scrip- without intention to change ownership- held such trading activity was manipulative in nature and were executed with a purpose to defraud the investors.
-Nilesh Kishanbhai Pandya V. Securities And Exchange Board Of India in Appeal Nos. 56 To 58 Of 2023
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