AT allowed the appeal and quashed the impugned order against the...

AT allowed the appeal and quashed the impugned order against the appellants. The Tribunal held that the regulator failed to establish a nexus between the Group-1 entities (appellants) and Group-2 counter-parties and that the appellants traded only on two days of the investigation period at market price. The evidence did not support a finding of a coordinated manipulative scheme or artificial inflation of volumes in the illiquid scrip. The appellants' sale of their entire shareholding in Patch 1 was held to be genuine disposition upon observing price movement and, therefore, not violative of section 12A(a)-(c) of the SEBI Act or Regulations 3(a)-(d) and 4(1), 4(2)(a) of the PFUTP Regulations.