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Showing contexts for: fraud defination in Ms. Neetu Gupta vs Sebi on 12 March, 2019Matching Fragments
3. On the basis of the aforesaid investigation, a prima-facie conclusion was drawn that the appellants had violated the position limits on several trading days in violation of SEBI's circulars dated September 27, 2016 and July 25, 2017. Presumption was drawn that NEFM indirectly traded and took delivery of significant amount of Mentha Oil from the exchange platform by way of transfer of funds to Group A and Group B entities and thereby accumulated / cornered substantial percentage of specified stocks of Mentha Oil from the exchange platform. A prima-facie conclusion was drawn that such cornering of dominant / large / substantial percentage or specified stocks of Mentha Oil was fraudulent within the meaning of the term 'fraud' as defined under Regulation 2(1)(c) of Securities and Exchange Board of India (Prohibition of Fraudulent and Unfair Trade Practices relating to the Securities Market) Regulations, 2003 (hereinafter referred to as, ' PFUTP Regulations') and was also in violation of Section 12A of the SEBI Act read with Regulations 3 and 4 of the PFUTP Regulations. A presumption was drawn that this accumulated / cornered stocks of Mentha Oil was predominantly done with the purpose of manipulating the Mentha Oil market on the exchange platform and on the physical stocks of Mentha Oil through Group A and Group B entities. A prima-facie opinion was formed that concentration of large stocks with a single entity was detrimental to the price discovery and that a single entity was in a position to dictate the Mentha Oil Future Contracts on exchange platform during the lean season. On this bonafide apprehension that a single entity could dominate or dictate the price of Mentha Oil on future contracts on the exchange platform led the WTM to adopt urgent measures by passing an ex-parte interim order with a view to prevent the appellants from indulging in such activities or taking positions in Mentha Oil or for that matter in other commodities in violation of prescribed positions limits.