sebi:EAD-2/AO/141/2013
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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 was held liable for violating Regulation 3(a), (b), (c) read with Regulation 4(2)(a), (b) and (e) of the PFUTP Regulations, 2003 by participating in circular and synchronized trading in the scrip of BGSL as part of the Mahesh Mistry Group, and a total penalty of Rs. 3,00,000 was imposed under Section 15HA of the SEBI Act.
Full text
Page 2 of 17 referred to as ‘Noticee’) was part of a group of clients 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 ` 34.05 to ` 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, Dimple Shah (wife of the Noticee), Jalaj I Batra, Mahesh Mistry, Dharmendra S. Thapa, Pravin Kumar Jain, Suman Saini, Nicholas N. Gomes, 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 Action Financial Service (India) Ltd. and Pilot Capital Credit Ltd. The Noticee 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 4 of 17 Noticee was also granted an opportunity of personal hearing on June 05, 2012. The Noticee did not appear for the hearing. The consent application no. 1923/2010 dated March 08, 2010 filed by the Noticee was rejected by the High Powered Action Committee on December 21, 2012.
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Source: SecMarx — sebi:EAD-2/AO/141/2013. 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.