sebi:IVD-ID6/DM/AO/DRK-AKS/EAD-3/674/220-14
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Facts / Headnote
Penalties imposed on the noticee for violations of PFUTP Regulations, Takeover Regulations, and PIT Regulations
Provisions invoked
- s. 15A
- s. 15
- s. 15H
- s. 15J
Regulations
- Reg. 3
- Reg. 7
- Reg. 13
- Reg. 11
- Reg. 10
- Reg. 13(4)
- Reg. 13(5)
- Reg. 7(2)
- Reg. 15A
- Reg. 15H
Parties
- Shri Devang D Master
Holding
The noticee, Shri Devang D Master, was found to have violated the PFUTP Regulations, Takeover Regulations, and PIT Regulations by engaging in fraudulent trade practices creating artificial volume and price rise in the scrip, failing to make public announcement/open offer upon crossing the 15% threshold, and failing to make required disclosures. Penalties totaling ₹1,00,00,000 were imposed: ₹20,00,000 under Section 15HA for PFUTP violations, ₹75,00,000 under Section 15H(ii) for Takeover Regulations violations, and ₹5,00,000 under Section 15A(b) for disclosure failures.
Full text
Page 2 of 34 2005 to ` 113.00 on March 11, 2005 (an increase of ` 32) during 18 trading days. Total trading volume during the period of investigation was 2,17,700 shares with an average daily trading volume of 12,095 shares. One month before the investigation period the scrip traded with the daily average volume of 2,365 shares and the price of the scrip increased from ` 61.00 on 13th January, 2005 to ` 79.50 on 9th February, 2005 (an increase of ` 18.50). One month after the investigation period the scrip traded with an average trading volume of 13,773 shares per day and the price of the scrip came down to ` 97.80 on 11th April, 2005 as against ` 110.75 on 14th March, 2005 (Decrease of 13.29% during one month after investigation period). APPOINTMENT OF ADJUDICATING OFFICER
Page 3 of 34 SHOW CAUSE NOTICE, REPLY AND HEARING 4. A show cause notice ADJ/EIL/HB/PM/169796/2009 (hereinafter referred to as ‘SCN’) dated 15.07.2009 issued by the previous Adjudicating Officer was served on the noticee, pursuant to which noticee was granted two personal hearings on 29.05.2012 and 11.06.2012 by the undersigned. However, the noticee failed to attend any of the hearings provided to him without furnishing any reason. Thereafter an adjudication order was passed based on the material made available on record against the noticee on 31.01.2013.
Page 4 of 34 8. In the SCN dated 23.06.2014 following was alleged: • It was observed from the IR that the major buying clients viz. Shri Girdharbhai Vagadia, Shri Prasad Tandel, Shri Nilesh Upadhyay, Shri Prakash D’souza, Shri Kalpesh Babaraya and Shri Vithalbhai Gajera were found connected to each other through common telephone numbers, fund movement and off market transfers, bought together 1,25,400 shares contributing to 57.60% of the market volume trading through 6 different stock brokers. Two other clients found connected to above mentioned clients through off market transfers viz. Ms. Shila Suryavanshi and Shri Vikas Bengani also bought in small quantity during the investigation period and taken together total quantity bought by the connected clients was 1,39,400 shares. The clients are collectively referred to as Group. As reported by BSE the above entities were found to be trading in Prraneta Industries Ltd., Mega Corporation Ltd. and IFSL Ltd. as a group and was termed as Mahesh Mistry group. • It was also observed from the IR that the noticee was connected to Ms. Lata Agrawal, Shri Vasudev Agrawal, Ms. Indira Agrawal, Shri Shambhu Agrawal and Shri Rajendra Agrawal (connected as belonging to the same family and herein after referred to as 'Agrawal Family') as the noticee had transferred shares directly to them on 30.10.2004 and 01.11.2004. • It was alleged in the SCN that there was circular movement of shares among the noticee, the Group, Agarwal Family and other cli
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Source: SecMarx — sebi:IVD-ID6/DM/AO/DRK-AKS/EAD-3/674/220-14. 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.