sebi:EAD-5/SVKM/RGA/AO/20/2015-16

SEBI · SEBI · 2011-01-17 · S.V. Krishnamohan, Chief General Manager, Adjudicating Officer

This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.

Facts / Headnote

Violation established; monetary penalty imposed

Provisions invoked

• s. 15A
• s. 15I
• s. 15J
• s. 11C(6)
• s. 11C
• s. 12
• s. 11C(2)
• s. 11

Parties

• Vishal Vijay Shah

Holding

The Noticee violated sections 11C(2), 11C(3) and 11C(5) of the SEBI Act, 1992 by failing to furnish complete information in response to five summons and is liable for monetary penalty of Rs. 15,00,000 under section 15A(a).

Full text

Adjudication Order in respect of Vishal Vijay Shah in the matter of Maharashtra Polybutenes Ltd. September 14 , 2015 Page 2 of 18 Exchange Board of India Act, 1992 (hereinafter referred to as 'SEBI Act, 1992') and Regulations made thereunder. It was observed that during the relevant period, there was sudden spurt in the volumes traded and price of the scrip without any significant change in the economic fundamentals of the company. A total of 53,51,932 shares were traded and the price increased from ` 53.35 to ` 79.95 during the relevant period.

Adjudication Order in respect of Vishal Vijay Shah in the matter of Maharashtra Polybutenes Ltd. September 14 , 2015 Page 3 of 18 v. Details with regard to the trades vi. Details such as correspondence address, permanent address, PAN No., e-mail, Phone Number., etc. vii. Copy of Income tax return filed for Financial Year 2008-09& 2009-10. ii. summons dated June 13, 2011, July 14, 2011 under section 11C(2), (3),(6) of the SEBI Act, 1992 requiring Noticee to furnish the following information/documents as mentioned in the Annexure to the summons, before the Investigating Authority (IA) : i. Complete set of KYC documents of all the clients who dealt in the scrip of MPL. ii. Client ledger of the clients who dealt in the scrip of MPL. iii. Copy of contract notes issued to the clients who dealt in the scrip. iv. Details of payments made/received by the Noticee to clients namely Kamlesh Lalitkumar Nagarsheth, Vipul Bhagwandas Shah and R Raghavan. v. Details of Compliant received during the period from January 2008-March 2010. vi. Soft copy of quarterly statements of funds and securities sent during January 2008-March 2010 for the abovementioned clients.

Adjudication Order in respect of Vishal Vijay Shah in the matter of Maharashtra Polybutenes Ltd. September 14 , 2015 Page 4 of 18 vii. List of instances where the client code was modified at back office after the market hours. viii. Client master with all client details such as name, code, address, telephone number, e-mail, de-mat statement, bank details, etc. ix. List and details of branches and sub-broker offices. x. List of employees since 2008. xi. Listofgroup/subsidiarycompanies/associates/proprie torship, etc and their director details. xii. Details with regard to proprietary trades. iii. summons dated September 22, 2011 under section 11C(2), (3),(6) of the SEBI Act, 1992 as a reminder for all earlier summons requiring Noticee to furnish the unfurnished information/documents as mentioned in the Annexure to the previous summons, before the Investigating Authority (IA).

Source: SecMarx — sebi:EAD-5/SVKM/RGA/AO/20/2015-16. 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.