sebi:ORDER/BS/HKS/2017-18/1681
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Facts / Headnote
Disposed of without imposition of any penalty
Provisions invoked
- s. 15
- s. 12A
- s. 15H
Regulations
- Reg. 4
- Reg. 3
- Reg. 200
Parties
- Shri Sanjay Khatau Asher
Holding
The Adjudicating Officer held that the violation alleged against the Noticee is not supported by the facts and evidence available on record, and disposed of the adjudication proceedings without imposition of any penalty under Section 15HA of the SEBI Act, 1992.
Full text
Page 2 of 19 3. It is observed that Shri Sanjay Khatau Asher (hereinafter referred to as "Noticee") alleged to be a connected entity and traded in the shares of the Company during the investigation period. It is alleged that Noticee in connivance with other connected entities aided and abetted in creation of artificial demand and a false appearance of trading in the scrip of HIL. It is also alleged that Noticee’s acts of dealing in the scrip of HIL has led to manipulation of the price as well as creation of artificial volume in the scrip of HIL. Therefore, the Noticee is alleged to have violated the provisions of Regulations 3 (a) to (d) and 4 (1), 4 (2) (a), (e) and (g) of SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 2003 (hereinafter referred to as “PFUTP Regulations”) read with Section 12A(a), (b), (c) of the Securities and Exchange Board of India Act, 1992, (hereinafter referred to as “SEBI Act”).
Page 3 of 19 6. Vide letter dated April 29, 2014, Noticee filed a reply to the SCN and made the following submissions: i. It is submitted that the Noticee is not a connected person and he never had any financial or other dealings, directly or indirectly with any of the parties in the matter. ii. Further, submitted that the Noticee had bought shares of the Company merely on the basis of the news available in the public domain to the effect that: a. 2,50,000 shares of the Company were bought on 7th February, 2008 by Merill Lynch Capital Markets Espana at Rs. 300/- per equity share; b. 2,00,000 shares of the Company were bought on 8th February, 2008 by Kotak Mahindra (UK) Limted a/c Voyager Fund Mauritius Ltd. at Rs. 324.50/- per equity share; c. 2,30,000 shares of the Company were bought on 8th February, 2008 by Merill Lynch Capital Markets Espana S.A. SVB at Rs. 330/- per equity share; iii. All the three deals were block deals. However, the three deals indicated that serious investors have invested in the equity shares of the Company and acquired almost 7% of the equity capital of the Company. iv. It is submitted that Noticee’s intension to acquire shares of HIL was pure and simple investment.
Page 4 of 19 Noticee was provided another opportunity for inspection of documents on January 23, 2015 at 02:00 PM. However, the Noticee again failed to avail the inspection of documents.
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Source: SecMarx — sebi:ORDER/BS/HKS/2017-18/1681. 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.