SEBI was investigating the price movement in UTI Sunder ETF during August 01, 2011 to November 04, 2011 when its price went up from Rs 660 to Rs 2054.
SEBI today disposed a case against Pawan Kumar Soni for allegedly violating the rules of Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 2003 relating to trading in UTI Sunder ETF.
In the period August 01, 2011 to November 04, 2011, UTI Sunder ETF opened at a price of Rs 660 on 03.08.2011 and closed at Rs 2,054 on 04.11.2011. SEBI ordered an investigation to examine the price movement in UTI Sunder ETF. During the period under investigation, average trading in UTI Sunder ETF at BSE was around 25 units.
SEBI issued a show cause notice to Pawan alleging that he artificially inflated the price of the UTI Sunder ETF by executing self-trades and also gave a false and misleading appearance of trading in the UTI Sunder ETF.
The adjudicating officer found that Pawan had executed three self-trades in the UTI Sunder ETF for one unit each on three days. His total self-trade value was Rs 3080.
“I am of the opinion that trading of only one unit each on 3 occasions over the entire investigation period by the noticee may not amount to artificially inflating the price of UTI Sunder ETF and also it may not give a false and misleading appearance of trading in UTI Sunder ETF as alleged in the SCN. It can be concluded that the allegation against the noticee of violating SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 2003 is not established,” stated a SEBI press release.
