sebi:IVD-ID5/PPD/AO/DRK/SS/EAD3-37/2009
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Facts / Headnote
Penalty of Rs.3,00,000 imposed on Minal Finances Private Limited for violation of Regulation 13(3) of the PIT Regulations
Provisions invoked
- s. 15A
- s. 15
- s. 15I
- s. 15J
Regulations
- Reg. 13(3)
- Reg. 12
Parties
- Minal Finances Private Limited
Holding
The noticee violated Regulation 13(3) of the PIT Regulations by failing to disclose a more than 2% change in its shareholding in PPD within the prescribed time and is liable to penalty under Section 15A(b) of the SEBI Act. A penalty of Rs.3,00,000 is imposed on Minal Finances Private Limited.
Full text
Page 2 of 11 increase in share price and volume since August 2005, sudden jump in profits, transactions by the auditor related entities coupled with a flurry of corporate announcements including announcements on dividend / change in equity structure and about the proposal to implement new projects & purchase of plots of land in prime location and simultaneous off loading of promoters’ own holdings in the market appeared to be a careful strategy and orchestration of a plan by the promoters and auditors of the company to make personal gains at the expense of investors by inducing them to participate in the trading of the shares of the company.
Page 3 of 11 6. During this investigation period, it was observed that Minal Finances Private Limited (hereinafter referred to as the ‘noticee’) had bought 69,030 shares at an average rate of Rs.184.76/- and sold 382,048 shares at an average rate of 214.53/-, through the stock-broker S. M. Shah, thus resulting in a change of more than 2% in it’s shareholding in PPD, without making the necessary disclosure to PPD within 4 (four) working days, in violation of Regulation 13(3) of the Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 1992 (hereinafter referred to as the ‘PIT Regulations’).
Page 4 of 11 9. In the SCN it was alleged that, the noticee, Midas Jewels P. Ltd., Minal Agencies Pvt. Ltd. and Madhusudan Securities Ltd., were all linked with Shri Mayur A. Vora, a Partner of Vora & Associates, Auditors of PPD. The total purchases and sale of these four entities accounted for 2% and 8.68% of the total market volume of 8596,083 shares, respectively, as reflected in the table below: Entities connected / related to the Auditors of PPD, Vora & Associates
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Source: SecMarx — sebi:IVD-ID5/PPD/AO/DRK/SS/EAD3-37/2009. 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.