sebi:EAD-2/AO/142/2013
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Facts / Headnote
Violation established; penalty of ₹2,00,000 imposed under Section 15HA of the SEBI Act
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)
Parties
- Noticee (unnamed in text, wife of Piyush Shah)
Holding
The Noticee, as part of the Mahesh Mistry Group, was found to have violated Regulations 3(a), (b), (c) read with 4(2)(a), (b) and (e) of the PFUTP Regulations, 2003 by engaging in circular and synchronized trading in the scrip of BGSL, and a penalty of ₹2,00,000 was imposed under Section 15HA of the SEBI Act.
Full text
Page 2 of 16 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 16 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, Piyush Shah (husband of the Noticee), Jalaj I Batra, Mahesh Mistry, Dharmendra S. Thapa, Pravin Kumar Jain, Suman Saini, Nicholas N. Gomes, 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 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 16 8. The AO vide letter dated April 16, 2012, informed the Noticee that there were typographical errors in the SCN dated November 10, 2009 and accordingly, forwarded a copy of the corrected data to the Noticee. The Noticee was also granted an opportunity of personal hearing on June 05,
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Source: SecMarx — sebi:EAD-2/AO/142/2013. 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.