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2018 (6) TMI 1737 - AT - SEBIViolation of SEBI Act and the PFUTP Regulations - trading in the shares of Out of company - 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 trades and some trades had influenced the price of the scrip of the company by contributing the market net LTP (Last Traded Price) and some trades had also contributed to the NHP (New High Price) - Penalty imposed - HELD 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. 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 guilty of violating the SEBI Act and the PFUTP Regulations. Argument advanced by the Representative of the appellant that the penalty imposed is excessively harsh is without any merit. Penalty imposable under Section 15HA of SEBI Act for violating the PFUTP Regulations is up to ₹ 25 crore. However, after taking into consideration all mitigating factors the AO has imposed penalty of ₹ 7 lac which cannot be said to be unreasonable or excessive.
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