Description
SEBI adjudication order imposing penalties on 43 entities for fraudulent and unfair trade practices in the scrip of GG Engineering Limited.
Summary
SEBI has issued an adjudication order against 43 noticees (individuals and entities) in the matter of G G Engineering Limited for violations of SEBI Act, 1992 and SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003. The adjudication proceedings were initiated under Section 15-I of SEBI Act read with SEBI Adjudicating Rules, 1995.
Key Points
- Adjudication Order No. Order/AK/GN/2025-26/31848-31890 issued against 43 noticees
- Investigation conducted in the scrip of GG Engineering Limited (GGENG)
- Violations found under Section 12A(a), (b), (c) of SEBI Act
- Violations of Regulation 3(a), (b), (c), (d), 4(1), 4(2)(a), (k) and (r) of PFUTP Regulations
- Show Cause Notice dated February 13, 2025 issued to all noticees
- Adjudicating Officer appointed on January 24, 2025
- 43 entities include individuals, HUFs, and corporate entities involved in alleged fraudulent trading
Regulatory Framework
Applicable Provisions:
- Section 12A of SEBI Act, 1992 - Prohibition of manipulative, fraudulent and unfair trade practices
- Section 15-I of SEBI Act - Adjudication proceedings
- SEBI PFUTP Regulations, 2003 - Regulations 3 and 4
- SEBI (Procedure for Holding Inquiry and Imposing Penalties) Rules, 1995
Noticees Involved
The order covers 43 noticees including:
- Individuals: Manish Mishra, Rajan Gupta, Namita Garg, Vinayak Garg, Naresh Aggarwal, and 32 others
- Corporate entities: Vrindaa Advanced Materials Ltd., Vikas Lifecare Ltd., Advik Capital Ltd., Blue Square Corporate Services Ltd., Just Right Life Ltd., SKSE Securities Ltd., Wessel Consultancy Pvt. Ltd., Karavan Tradelink OPC Private Ltd.
- HUF: Shyam HUF
Compliance Requirements
- Noticees were required to respond to Show Cause Notice dated February 13, 2025
- Adjudication proceedings conducted under Rule 4(1) of SEBI Adjudicating Rules
- Penalties to be imposed under Section 15HA of SEBI Act for violations
Important Dates
- January 24, 2025: Adjudicating Officer appointed
- February 13, 2025: Show Cause Notice issued to noticees
- December 19, 2025: Adjudication order published
Impact Assessment
Market Impact:
- Enforcement action against large group of coordinated entities suggests organized manipulation in GGENG scrip
- Demonstrates SEBI’s commitment to investigate and penalize fraudulent trading practices
- Serves as deterrent for market manipulation activities
Regulatory Impact:
- Reinforces application of PFUTP regulations against manipulative trading
- Sets precedent for multi-party adjudication in coordinated manipulation cases
- Highlights importance of fair and transparent securities market operations
Impact Justification
Major enforcement action involving 43 entities for violations of PFUTP regulations, indicating serious market manipulation in GG Engineering Limited scrip