sebi:BM/AO-142/2011
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Provisions invoked
- s. 15
- s. 15H
- s. 15J
- s. 420
Regulations
- Reg. 3
- Reg. 4(1)
- Reg. 4(2)
- Reg. 3(a)
- Reg. 4(2)(e)
- Reg. 4(2)(g)
- Reg. 4(2)(b)
Parties
- Sandeep Jain
Holding
The Noticee Sandeep Jain is alleged to have indulged in circular/reversal synchronized trading in the scrip of Asian Star Company Limited, creating artificial volume and influencing the price, in contravention of fraud provisions applicable to listed securities.
Full text
_____________________________________________________________________________________ Sandeep Jain in the matter of Asian Star Company Limited Page 2 of 26 allegedly connected to each other had indulged in circular/reversal synchronized trading in such a manner that led to creation of artificial volume in the scrips.
_____________________________________________________________________________________ Sandeep Jain in the matter of Asian Star Company Limited Page 3 of 26 (c) That if Swastika has opened my trading account then he should have given me the information regarding my account. (d) That from the statement of my trading account UD 2101 with Swastika it is observed that cheque deposits of ` 6,50,000 were made from Suresh and Pradesh in my account. Further, first cheque deposit of ` 10,000 was also made by Suresh Hanswal. (e) That I know Pradesh as we used to work together at Rishab Dev Textile ten years ago. Then I left that job and started a motor parts shop in Udaipur. There I happened to meet Pradesh who at that time was working at Indiabulls. Pradesh opened my trading and demat account at Indiabulls with account no. UD 178. Thereafter, Pradesh left Indiabulls and started Arcadia Shares Brokers at Udaipur. He then opened my trading account with Arcadia with account no. UD 058. There Pradesh introduced me to Suresh Hanswal. Suresh and Pradesh were partners at Arcadia. I used to work for Indiabulls and Arcadia and visit at their office. (f) That one day Suresh and Pradesh said that for my account with Arcadia they require my photo, cheque and PAN card copy. They made me sign on some papers and asked me give a cance
_____________________________________________________________________________________ Sandeep Jain in the matter of Asian Star Company Limited Page 4 of 26 and Pradesh knows about the trading which was carried out in my account and I got stuck because of their trading. (i) That when I received letters from SEBI I would take them to Suresh and Pradesh to see what letters have come from SEBI. They said that they had replied to SEBI from the reply which they got signed from me. (j) That it is pertinent to mention that Suresh, Pradesh and Swastika were aware that SEBI has initiated enquiry against ASCL matter so they got those letters notarized. That I have not notarized those letters. (k) As per investigation Suresh and Pradesh has given me cheque for `. 6,50,000. I would like to state that neither they are my brothers nor relatives. I came to know Pradesh when we used to work together 10 years ago. If I would have been part of their fraud then didn’t I would have deposited first cheque of ` 10,000 from my bank account? Whenever I have traded through Indiabulls or Arcadia I always used to give cheques from my bank account only and not from any other bank account. (l) That Swastika after realizing that they have done mistake by accepting third party cheques they approached me with a consent letter and asked me to sign it. I refused to sign tho
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Source: SecMarx — sebi:BM/AO-142/2011. 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.