sebi:IVD/KSERA/AO/DRK/ASG/EAD3-36/2009
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Facts / Headnote
Penalty of Rs. 23,00,000 imposed on the noticee for violations of Regulation 4(1) and 4(2)(a), (b), (e) and (g) of the PFUTP Regulations
Provisions invoked
- s. 15
- s. 15H
- s. 15J
Regulations
- Reg. 3
- Reg. 4(1)
Parties
- Tejas Ghelani
Holding
The noticee Tejas Ghelani was found to have violated Regulation 4(1) and 4(2)(a), (b), (e) and (g) of the PFUTP Regulations by executing synchronized/circular trades and non-genuine transactions in the scrip of KSERA along with a group of clients and stock brokers during the period June 1, 2004 to October 31, 2004. A penalty of Rs. 23,00,000 was imposed under Section 15HA of the SEBI Act.
Full text
Page 2 of 11 3. SEBI conducted investigation into the trading of the scrip of KSERA, during the period from June 01, 2004 to October 31, 2004 (hereinafter referred to as ‘Investigation Period’). During this period, the shares of KSERA were listed only in BSE. The Investigation Report observed that during the Investigation Period the price of the scrip opened at Rs. 83.00 on June 01, 2004, reached period low of Rs. 79.90 on June 01, 2004, touched a high of Rs. 164.00 on October 28, 2004 and closed at Rs. 151.75 on October 29, 2004. During the period from June 1, 2004 to June 25, 2004 the scrip moved gradually from Rs.79.90 to 117.10 in 19 trading days. Thereafter the scrip registered a day high of Rs.130 on June 28,
Page 3 of 11 APPOINTMENT OF ADJUDICATING OFFICER 5. I was appointed as the Adjudicating Officer (subsequent to the transfer of Shri Biju S.) vide order dated December 10, 2008, under section 15 I of Securities and Exchange Board of India Act, 1992 (hereinafter referred to as the ‘SEBI Act’), read with Rule 3 of Securities and Exchange Board of India (Procedure for Holding Inquiry and Imposing Penalties by Adjudicating Officer) Rules, 1995 (hereinafter referred to as ‘Adjudication Rules’) to inquire into and adjudge under Section 15HA of the SEBI Act, the violations of Regulation 4(1) and 4(2) (a), (b) (e) and (g) of SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 2003 (hereinafter referred to as the ‘PFUTP Regulations’) alleged to have been committed by the noticee.
Page 4 of 11 8. A hearing notice dated March 25, 2009, granting a personal hearing to the noticee on May 07, 2009 was sent by Registered Post Acknowledgement Due. The noticee failed to appear for the hearing. A final hearing notice dated May 14, 2009 was served on the noticee by Hand Delivery granting him a personal hearing on June 08, 2009. The noticee again failed to appear for the personal hearing.
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Source: SecMarx — sebi:IVD/KSERA/AO/DRK/ASG/EAD3-36/2009. 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.