Adjudication Proceeding initiated against Accolade Holdings Private Limited disposed of

Adjudication Proceeding initiated against Accolade Holdings Private Limited disposed of

Due to zero LTP contribution by the Noticee in a price rise period, the allegation of manipulating the price of the scrip was not established

Securities and Exchange Board of India (SEBI) initiated adjudication proceedings under Section 15HA of the Securities and Exchange Board of India Act, 1992, against Accolade Holdings Private Limited (Accolade/Noticee/You) for the alleged violations of Section 12A(a),(b),(c) of SEBI Act, 1992 read with Regulation 3(a),(b),(c),(d) and Regulations 4(1), 4(2) (a), (e) of Securities and Exchange Board of India (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 2003 (PFUTP Regulations) pursuant to investigation in the scrip of PMC Fincorp Limited (PMC/Scrip/Company) for the period 29 March 2012 to 31 March 2015 (IP/investigation period).

The allegation against the Noticee was based on the connection of Noticee with Economy Suppliers Pvt Ltd for receiving 1,00,000 shares of PMC in off-market on 25 March 2013 and selling all the shares in the market on 25 March 2013 and 26 March 2013.

It was noted that Noticee through 58 sell trades had contributed to zero LTP during the price rise period. Further, these 58 sell trades were with 21 counterparties who were scattered.

It was noted that the allegation against the Noticee was based only on two trades out of total 58 trades carried out by the Noticee during Patch 3. The allegation of colluding for price rise was not supported by the LTP contribution of the Noticee's 58 trades of zero.

It was also opined that despite the LTP contribution of Re.1 by the two impugned trades, both trades matched at the same price of Rs.107. Also, both trades resulted from the same order. Thus, in view of zero LTP contribution by the Noticee in a price rise period, it was found that the allegation of manipulating the price of the scrip by contributing to the price rise by the Noticee was not established.

The price of PMC on 25 March 2013 opened at Rs.108 and closed at Rs.106.5 and both the Noticee's LTP contributing trades matched at Rs.107.Based on the pattern of trading by the Noticee, which is primarily the sale of shares leading to Zero LTP contribution during the price rise period, the contention of the Noticee that the two sell trades on 25 March 2013, contributing Re.1,cannot manipulate the market or reflect any pattern or any collusion or manipulation was accepted.

The allegation against the Noticee was based on positive LTP contribution caused by two trades of the Noticee on 25 March 2013 for 2000 shares each to Embassy Sales Pvt. Ltd. at a price ofRs.107. These2 trades contributed Re.0.5 and Re.0.5to LTP respectively.

It was also noted that the Noticee had placed only one order which matched with two orders of Embassy Sales Pvt. Ltd.

It was found that the allegation levelled against the Noticee regarding violation of Section 12A(a),(b),(c) of SEBI Act, 1992 r/w Regulation 3(a),(b),(c),(d) and Regulation 4(1), 4(2)(a), (e) of PFUTP Regulations was not established.