sebi:BM/AO-59/2012

SEBI · SEBI · 2010-11-09 · Barnali Mukherjee, Adjudicating Officer

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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

Regulations

Parties

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never dealt in the scrip of ASCL as alleged in your Notice,  and as allegations are totally false, the Notice should be withdrawn.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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