sebi:EAD-2/AO/107/2012
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Facts / Headnote
Penalty imposed
Provisions invoked
- s. 15
- s. 15H
- s. 15J
Regulations
- Reg. 4
- Reg. 3
- Reg. 2(1)(c)
- Reg. 4(a)
- Reg. 4(2)
- Reg. 47
- Reg. 3(a)
Holding
The Noticee, as part of the Mahesh Mistry Group, violated Regulations 3(a), (b), (c) read with Regulation 4(2)(a), (b) and (e) of the PFUTP Regulations by synchronized and circular trading in the scrip of BGSL and was held liable for a total monetary penalty of Rs. 5,00,000 under Section 15HA of the SEBI Act.
Full text
Page 2 of 17 connected to each other one way or the other (hereinafter referred to as ‘Mahesh Mistry Group’ ) who had employed manipulative and deceptive devices of trading which led to creation of artificial demand and a false appearance of trading in the scrip of BGSL
Page 3 of 17 6. The SCN alleged that during the period May 02, 2003 to November 21, 2003 the price of the scrip of BGSL rose from Rs. 34.05 to Rs. 120 (i.e., a rise of around 254%) and a total of 1,54,18,430 shares were traded. Noticee was part of Mahesh Mistry Group which included the Noticee, Mahesh Mistry, Dharmendra S. Thapa, Pravin Kumar Jain, Suman Saini, Nicholas N. Gomes, Piyush Shah, Dimple Shah, Harish Kapadia, Vinod Khetan, M/s Shri Sai Shraddha Leasing & Hire Purchase Finance Private Limited, M/s Arihant Securities and M/s Shiner Trading Co. Pvt. Ltd., Rupa V Shah, Narendra Ganatra, Anita Khetan and Vijay Amrutlal Rathod. Noticee being a member of Mahesh Mistry Group traded in the shares of the BGSL through various trading members namely Ruchiraj Share and Stock Brokers, Ramaben Samani Finance Pvt. Ltd., Mangal Keshav Share and Stock Brokers Ltd. and Adi Bilimora. The Noticee aided and abetted in employing manipulative and deceptive devices of trading which led to creation of artificial demand and a false appearance of trading in the scrip of BGSL.
Page 4 of 17 outside India and requested 10 days time for filing reply. The AO granted another opportunity of personal hearing to the Noticee on February 22,
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Source: SecMarx — sebi:EAD-2/AO/107/2012. 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.