sebi:BM/AO-144/2013
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Facts / Headnote
Penalty imposed on Noticee for fraudulent and unfair trade practices
Provisions invoked
- s. 15
- s. 15H
- s. 15J
Regulations
- Reg. 3
- Reg. 4(1)
- Reg. 3(a)
Parties
- Ashwin D Doshi
Holding
The Noticee, Ashwin D Doshi, was held to have violated regulations 3(a), (b), (c), (d) and 4(1) of the PFUTP Regulations, 2003 by transferring shares off-market through a web of entities to create artificial volume in the scrip of Eltrol Ltd., and a penalty of Rs. 8,00,000 was imposed under section 15HA of the SEBI Act.
Full text
Page 2 of 18 volume on July 01, 2005, when only one share was traded and highest being on August 26, 2005 when 1,36,70,180 shares were traded.
Page 3 of 18 3. It was observed from the investigation that one of the entities, Ashwin D Doshi (hereinafter referred to as “Noticee”) was allegedly connected to the director of EL and transferred 1,99,510 shares to T.H. Vakil and Securities Pvt. Ltd (hereinafter referred to as “Vakil Shares”). These shares were offloaded in the market through a web of entities which allegedly created volume in the market. In view of the above it was alleged that the Noticee violated regulations 3(a), (b), (c), (d) and 4 (1) of SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Markets) Regulations, 2003 (hereinafter referred to as “PFUTP”) and consequently, liable for monetary penalty under section 15HA of Securities and Exchange Board of India Act, 1992 (hereinafter referred to as “SEBI Act”).
Page 4 of 18 SHOW CAUSE NOTICE, HEARING AND REPLY 7. Show Cause Notice No. EAD-5/VSS/JR/124065/2008 dated April 28, 2008 (hereinafter referred to as “SCN”) was issued to the Noticee under rule 4(1) of the Rules to show cause as to why an inquiry should not be held and penalty be not imposed under section 15HA of SEBI Act for the alleged violation specified in the said SCN.
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Source: SecMarx — sebi:BM/AO-144/2013. 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.