Description
SEBI adjudication order against 20 entities for price and volume manipulation in Quasar India Limited scrip during May 2022 to December 2023.
Summary
SEBI has issued an adjudication order (Order No. Order/AK/DS/2025-26/31761-31780) against 20 entities for price and volume manipulation in the scrip of Quasar India Limited. The investigation covered the period from May 01, 2022 to December 31, 2023. The proceedings were initiated under Section 15-I of the SEBI Act, 1992 read with Rule 5 of SEBI (Procedure for Holding Inquiry and Imposing Penalties) Rules, 1995 for violations of SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003.
Key Points
- 20 noticees charged with violations including M/s Chandrima Mercantiles Limited and 19 individuals
- Investigation period: May 01, 2022 to December 31, 2023
- Violations relate to SEBI (PFUTP) Regulations, 2003
- Noticee No. 1 charged under Section 15HA of SEBI Act, 1992
- Noticees No. 2-19 charged under Section 15HA of SEBI Act, 1992
- Noticee No. 20 (Mr. Arpit Piyushbhai Shah) charged under both Section 15HA and 15A(a) of SEBI Act, 1992
- Adjudication Officer appointed vide order dated December 10, 2024
- Case involves alleged price and volume manipulation in Quasar India Limited scrip
Regulatory Changes
This is an enforcement order and does not introduce new regulatory changes. It applies existing provisions of SEBI (PFUTP) Regulations, 2003 and SEBI Act, 1992.
Compliance Requirements
Market participants must:
- Refrain from price manipulation activities in securities
- Avoid volume manipulation practices
- Ensure trading activities comply with SEBI (PFUTP) Regulations, 2003
- Maintain fair and transparent trading practices
Important Dates
- Investigation Period: May 01, 2022 to December 31, 2023
- Adjudication Officer Appointment: December 10, 2024
- Order Date: October 31, 2025
Impact Assessment
Market Impact: Limited to Quasar India Limited scrip and involved entities. Serves as deterrent against manipulative trading practices.
Regulatory Impact: Demonstrates SEBI’s continued enforcement of anti-manipulation provisions under PFUTP Regulations.
Operational Impact: The 20 entities face adjudication proceedings and potential penalties. Market participants engaged in similar activities may face heightened scrutiny.
Investor Impact: Reinforces investor protection measures against fraudulent and unfair trade practices in securities markets.
Impact Justification
Enforcement action against 20 entities for manipulative trading practices. While significant for involved parties, limited broader market impact as it involves a single scrip.