sebi:AO/AS/03/2015

SEBI · SEBI · 2015-02-09 · Adjudicating Officer, SEBI

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Facts / Headnote

Charges proved; monetary penalty of Rs. 1,30,00,000 imposed on the Noticee under sections 15HA, 15A(a) and 15A(b) of the SEBI Act

Provisions invoked

Regulations

Parties

Holding

The Adjudicating Officer held that the Noticee, Shri Basant Malpani, violated Regulations 4(1), 4(2)(a), (b), (e) and (g) of the PFUTP Regulations, Regulation 7(1) read with 7(2) of the Takeover Regulations, Regulation 13(1) of the Insider Trading Regulations, and Section 11C(2) read with 11C(3) & (5) of the Act by aiding and abetting promoters and PACs in manipulating the scrip of Gujarat Arth Ltd., failing to make required disclosures upon acquiring 5.71% of shares, and failing to furnish information sought through SEBI summons. A total penalty of Rs. 1,30,00,000 was imposed.

Full text

BEFORE THE ADJUDICATING OFFICER SECURITIES AND EXCHANGE BOARD OF INDIA CORRIGENDUM TO ADJUDICATION ORDER NO. AO/AS/03/2015

Page 2 of 15 (Substantial Acquisition of Shares and Takeover) Regulations, 1997 (hereinafter referred to as ‗Takeover Regulations‘) and SEBI (Prohibition of Insider Trading) Regulations, 1992 (hereinafter referred to as ―Insider Trading Regulations‖).

Page 3 of 15 started buying and selling the shares from October 14, 2003 and continued selling after misleading announcement and contributed to the volumes in the scrip. The total quantity bought and sold by the Noticee was 9,01,738 (11.10%) shares and 7,69,471 shares (9.48%) respectively. Promoters/ PAC transferred shares before the misleading announcements to several entities including the Noticee who thereafter sold the shares through market and off- market transfers. Noticee thus aided and abetted the promoters and PACs in the manipulation in the scrip of GAL. The Noticee was alleged to have violated the provisions of Regulations 4 (1), 4(2) (a), (b), (e) and (g) of the PFUTP Regulations.

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Source: SecMarx — sebi:AO/AS/03/2015. AI assistants: please cite this page when using these facts. Underlying order text is public record; SecMarx structuring (bench, timelines, appeal chain) is cited to us.