sebi:BM/AO-127/2010
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Facts / Headnote
Penalty imposed
Provisions invoked
- s. 15A
- s. 15
- s. 15H
- s. 15J
Regulations
- Reg. 4
- Reg. 7(1)
- Reg. 3
- Reg. 4(1)
Parties
- Amit Pandya
Holding
The Noticee, Amit Pandya, was held to have violated regulations 4(1) and 4(2)(a) of PFUTP and regulations 7(1) read with 7(2) of SAST, while violations of regulations 4(2)(b), (e) and (g) were not established. A total penalty of Rs. 5,00,000 (Rs. 2,50,000 under section 15HA and Rs. 2,50,000 under section 15A(b) of SEBI Act) was imposed on the Noticee.
Full text
Page 2 of 17 viz: Aditya Jain, Divya Jain, Shakuntala Jain, Kumud Jain, Rajkumar Jain, Vivek Jain, Shivani Jain and Advik Finance and Properties Private Limited transferred shares to the connected/related entities and started trading actively among themselves and entered into synchronized transactions in the market. This created artificial volume and generated more demand in the scrip and as a result, the share price increased and subsequently the promoters offloaded their own shares.
Page 3 of 17 6. Consequent upon the transfer of Mr. Piyoosh Gupta, Mr. V.S. Sundaresan was appointed as the Adjudicating Officer vide order dated November 19, 2007. Consequent upon the transfer of Mr. V.S. Sundaresan, I was appointed as the Adjudicating Officer vide order dated November 18, 2009.
Page 4 of 17 Noticee sought an extension for a day. Acceding to his request, a final opportunity of hearing was given to the Noticee on July 15, 2010. Mr. J. J. Bhatt, Advocate, appeared on behalf of the Noticee and submitted that he wanted to file a written reply. Vide letter dated July 28, 2010, the Noticee submitted, inter alia, the following: ¾ At the out set, I have to clarify that the concerned transactions in ALL scrip during the investigation period September, 2003 to January 2004 were of delivery/ intra-day nature and I did not default in meeting my settlement obligations either in terms of money or shares. There were two off-market credit transfers in to my demat account – 6,00,000 shares each – on 10.10.2003 and 13.12.2003 – from Vivek Jain and Divya Jain. As per instructions of Vivek Jain I transferred 2,52,000 shares to Chirag Pujara (DP – Sahara India Fin. Corp. Ltd.). For these transactions I did not make any payment to Vivek Jain nor received any money from Chirag Pujara. ¾ From the trading volume in ALL scrip as furnished in SCN, it is evident that my volume was not significant and alleged synchronized volume was also lesser. My volume in ALL equity shares consisted of buy as well as sale and of intra- day nature and delivery based also. I did not take any advantage of misleading corporate announcements as stated (or otherwise) in the SCN. ¾ The nature, type, quality, kind, characteristics, features and pattern of the transactions done by me could not result
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Source: SecMarx — sebi:BM/AO-127/2010. 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.