sebi:EAD-5/SVKM/RGA/AO/01-12/2015

SEBI · SEBI · 2013-07-30 · S.V. Krishnamohan, Chief General Manager, Adjudicating Officer

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Facts / Headnote

Noticees 1-10 held liable for violations of PFUTP Regulations, 2003 and penalized under Section 15HA of SEBI Act, 1992; charges against Noticees 11 and 12 not established and no penalty imposed.

Provisions invoked

• s. 15
• s. 15H
• s. 15J

Regulations

• Reg. 4
• Reg. 3
• Reg. 4(1)
• Reg. 2
• Reg. 47
• Reg. 4(2)(a)
• Reg. 4(2)(e)
• Reg. 4(2)(g)
• Reg. 4(2)(b)
• Reg. 4(1)(2)(e)

Holding

Noticees 1 through 10 were found to have violated Regulation 4(1), 4(2)(a), (b), (e) and (g) of the PFUTP Regulations, 2003 by indulging in synchronized trades and cross deals that created artificial volume in the scrip of Harita Seating Systems Limited, and were imposed penalties totaling Rs. 59,00,000 under Section 15HA of the SEBI Act, 1992. Charges against Noticees 11 and 12 were not established due to data insufficiency.

Full text

Adjudication Order in the matter of Harita Seating Systems Limited Page 2 of 54 July 31, 2015 7. Madhukanta Dhanvantrai Mehta EAD-5/SVKM/RGA/AO/07/2015 AAGPM7193Q

Adjudication Order in the matter of Harita Seating Systems Limited Page 3 of 54 July 31, 2015 2. Pursuant to the said investigation, it was alleged that Priya Dhaval Thakkar, Mahesh Dhanvantrai Mehta, Nikunj Dhanvantrai Mehta, Amita Nitesh Thakkar, Fenil Nitesh Thakkar, Nitesh Arjun Thakkar (HUF), Madhukanta Dhanvantrai Mehta, Nitesh Arjun Thakkar, Dhaval Arjun Thakkar, Yogesh Rasiklal Doshi, Darshana Yogesh Doshi, Mitali Yogesh Doshi (hereinafter referred to as 'Noticees') while transacting through Aquarian Share Broking Co. Pvt. Ltd. (hereinafter referred to as 'ASB') a sub- broker (SEBI Regn No INS 012298431) of SVS Securities Limited, trading member BSE & NSE [SEBI Regn. No. BSE-INB010995736, INF010995736, INB230995731 & INF230995731] (hereinafter referred to as 'SVS') indulged in synchronized trades and cross deals that created artificial volumes and rigged the price of the scrip. It was therefore, alleged that Noticee No. 1 to Noticee No. 7 had violated Regulation 4(1), 4(2) (a) and (g) SEBI (Prohibition of Fraudulent and Unfair Trade Practices) Regulations, 2003 (hereinafter referred to as ‘PFUTP Regulations, 2003’), and Noticee No. 8 to Noticee No.10 had violated Regulation 4(1), 4(2) (a), (b),(e) and (g) of PFUTP Regulations, 2003 and Noticee No. 11 & Noticee No.12 had violated Regulation 4(1)(2)(e)of PFUTP Regulations, 2003 and liable for monetary penalty under section 15HA of SEBI Act, 1992.

Adjudication Order in the matter of Harita Seating Systems Limited Page 4 of 54 July 31, 2015 as the Adjudicating Officer vide order dated July 30, 2013. Subsequent to the transfer of Shri Piyoosh Gupta, Shri A. Sunil Kumar was appointed as Adjudicating Officer vide order dated November 08, 2013. Pursuant to the transfer of Shri A. Sunil Kumar, the undersigned has been appointed as the Adjudicating Officer vide order dated June 22, 2015.

Source: SecMarx — sebi:EAD-5/SVKM/RGA/AO/01-12/2015. 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.