sebi:BM/AO-59/2012
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Facts / Headnote
Noticee held liable for violating Regulation 3(a),(b),(c),(d) and 4(1), 4(2)(a),(b),(e),(g) of SEBI PFUTP Regulations; penalty imposed under section 15HA of SEBI Act, payable within 45 days
Provisions invoked
- s. 15
- s. 15H
- s. 15J
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
- Alpesh Girish Dand
Holding
The Noticee was found to have executed circular/reversal, synchronized and structured trades with connected entities of the Mehta group in the scrip of Asian Star Company Limited, thereby violating Regulation 3(a),(b),(c),(d) and 4(1), 4(2)(a),(b),(e),(g) of the PFUTP Regulations, and a monetary penalty was imposed under section 15HA of the SEBI Act.
Full text
_____________________________________________________________________________________ Alpesh Girish Dand in the matter of Asian Star Company Limited Page 2 of 29 connected had allegedly indulged in circular/reversal synchronized trading in such a manner that led to creation of artificial volume in the scrips.
_____________________________________________________________________________________ Alpesh Girish Dand in the matter of Asian Star Company Limited Page 3 of 29 statements based on which the proceedings was initiated. Vide letter dated January 31, 2011 Noticee was provided with his statement recorded before investigations and advised to specify the documents required by him. Noticee was given time till February 14, 2011 to reply to the SCN. Vide letter dated February 1, 2011 Noticee sought time till February 28, 2011 to file reply to the SCN. Vide letter dated February 28, 2011 Noticee filed reply to the SCN. Noticee denied all the charges leveled against him and inter alia submitted following:
_____________________________________________________________________________________ Alpesh Girish Dand in the matter of Asian Star Company Limited Page 4 of 29 submit that as I have never dealt in the scrip of ASCL as alleged in your Notice, and as allegations are totally false, the Notice should be withdrawn. f. I submit that I have no knowledge of the parties or persons or names mentioned at Para 5, 6,7,8, and 9 of the SCN, I submit that I have no knowledge of the within named persons and is not related or have any connection directly or in directly with the within named parties or within named persons. g. That I am not aware of within named entities called Mehta group or any persons named in Para 9 of the Notice and had no dealings or relations direct or indirect or ant connection or have knowledge of these parties or persons. h. As regards statement recorded by IA wherein some statements were shown to me during the course of hearing and after going through the records I confronted the broker for the lapse on his part and requested him to correct the wrong doing which he has done. i. Please note that I was not having any record at that time I have given the replies based on the statement shown by the IA of the broker wherein he has shown the trades. j. Please note that in the statement there is no specific mention of the alleged trades done in my code on November 7, 2008 but a g
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Source: SecMarx — sebi:BM/AO-59/2012. 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.