sebi:EAD-2/DSR/KM/105/2014
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Facts / Headnote
Penalty imposed on the Noticee for fraudulent and unfair trade practices
Provisions invoked
- s. 15
- s. 12A
- s. 12
- s. 15H
- s. 15J
Regulations
- Reg. 3
- Reg. 4(1)
- Reg. 3(a)
Parties
- Suresh Hanswal
Holding
The Noticee, Mr. Suresh Hanswal, was found to have violated Regulations 3(a), 3(b), 3(c), 3(d), 4(1), 4(2)(a), 4(2)(b), 4(2)(e) and 4(2)(g) of the PFUTP Regulations read with Section 12A(a), (b) and (c) of the SEBI Act by indulging in synchronized/structured/circular trading with the Mehta Group, and a penalty of Rs. 10,00,000/- was imposed under Section 15HA of the SEBI Act.
Full text
Page 2 of 19 2. During the period for which the scrips were investigated, there was huge change in price of the scrip. The volume of trade and the change in price of each of the aforesaid companies on BSE are mentioned below.
Page 3 of 19 4. Shri Suresh Hanswal (hereinafter referred to as the ‘Noticee’), is alleged to have executed several transactions in the shares of Allcargo, Asian, KSL, Panaromic, SAT and Ushdev through the broker Triveni Management Consultancy Services Limited in collusion with other entities of the Mehta Group which were in the nature of synchronized/structured/circular trades and thus created artificial volumes as well as influenced the price of the said scrips.
Page 4 of 19 Show Cause Notice, Reply and Personal Hearing 7. A notice dated October 28, 2011 (hereinafter referred to as “SCN”) was issued to the Noticee under rule 4(1) of the Rules to show cause as to why an inquiry be not held and penalty be not imposed on them under section 15HA of the SEBI Act for the alleged violations as mentioned above. Since the aforesaid Notice could not be delivered, a notice dated February 09, 2012 was also sent to the Noticee. Further, vide letter dated June 01, 2012, the broker for the Noticee viz. Triveni Management Consultancy Services Limited was asked to deliver the notice to the Noticee. The broker vide letter dated October 25, 2012 submitted that it had delivered the Notice to the Noticee with a proof of delivery. The Noticee was granted an opportunity of personal hearing on November 19, 2012 vide hearing notice dated November 01, 2012. However, the notice returned undelivered. A final opportunity of hearing was granted to the Noticee on January 23, 2014, which was published in a Newspaper having nationwide circulation. However, the Noticee did not appear for the hearing.
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Source: SecMarx — sebi:EAD-2/DSR/KM/105/2014. 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.