SEBI v. Mayur Maheshkumar Panchal and others (order placement and cancellation, Ejecta Marketing, 2022)

Judgment entered

✓ Checked against the primary document on October 8, 2026. The library's summary, tags and figures for this record were compared with the regulator's own document by an AI model (Claude) following written instructions, in a single reading of the order; an independent second reading of 60 SEBI records agreed on every field for 56, the four misses being penalty amounts; a later sample of 50 of the SEBI records added on 9 October agreed on every field for 46. No lawyer has reviewed them. A checked record can still contain errors, and checked does not mean endorsed. See how we check records or report a correction.

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A SEBI adjudicating officer fined eight noticees Rs 51 lakh in total over trading in Ejecta Marketing shares in January and February 2018, when buy-recommendation SMS messages circulated. He found three noticees placed and then deleted large orders to fake market depth so others could sell out of an illiquid stock.

The record

What was ordered

Civil penalty

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Disgorgement

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Prejudgment interest

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Total relief

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Alleged gain

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Penalty as published

5.1m INR

A dash means the release did not state a figure we could extract, not that the figure is zero. Penalty and disgorgement are stored separately so aggregates across the library do not double-count the same dollars. This regulator states penalties in INR. The figure is recorded as published and is not converted, so it does not appear in the USD totals or medians used elsewhere on this site.

What is alleged to have happened

The adjudicating officer of the Securities and Exchange Board of India decided the matter on 6 September 2022. It is the second SEBI order arising from trading in the shares of Ejecta Marketing Limited, a Kolkata chemicals and colourants trader, and covers a different period (28 December 2017 to 20 February 2018) from the earlier case. SEBI began after ICICI Securities complained that SMS messages recommending the stock were circulating.

The price rose from about Rs 53.70 to Rs 74.60 between 9 January and 2 February 2018, with average daily volume jumping from about 66,000 shares before the messages to about 7.9 lakh during them, and then fell to the lower circuit from 5 February. SEBI alleged that three noticees placed large orders and then deleted them, and that two of them traded with clients who were net sellers, creating false volume and market depth so that four others could exit the illiquid shares.

The order finds that the trades of the first three noticees were manipulative, noting the practice of placing and then deleting large orders to mislead investors about depth at the best bid or offer. It finds that the four exiting noticees took part under section 12A and the PFUTP Regulations, and that the broker, Bhansali Value Creations Ltd, breached the code of conduct.

Penalties were Rs 10 lakh each on Mayur Maheshkumar Panchal and Jay Kamleshbhai Bhavsar, Rs 5 lakh on Hiteshbhai Mistri, Rs 6 lakh each on four exiting noticees, and Rs 2 lakh on the broker under section 15HB, Rs 51 lakh in all. A ninth noticee, Preeti Jain, received no penalty.

The record does not show who wrote the SMS messages, whether anyone appealed, or the profits made. It describes no criminal case.

This library tags the matter as spoofing (placing and deleting large orders to fake depth). The tagging is ours, not the regulator's.

For the regulator's own account of the facts, read the primary document linked above. This page deliberately summarises the structured record rather than reproducing the order.

What technique is this, and how does it work?

This action is tagged with one technique in our taxonomy. The tagging is ours: regulators charge statutory provisions, not technique names, so the mapping is an editorial judgement described in our editorial policy.

• Spoofing — see how it works, what statute it engages, and every other action tagged the same way.

Timeline

1. 2022-09-06 SEBI order

Primary documents

Everything on this page derives from the documents below. Where our summary and the primary document disagree, the primary document is right.

• SEBI order

The linked release is published by the issuing regulator under its own terms. Our summary and narrative above are our own writing.

Related actions

Other actions in the library sharing at least one technique tag with this one.

Record added October 8, 2026. submit a correction.