sebi:Order/AA/JR/2020-21/9441

SEBI · SEBI · 2014-11-28 · Dr. Anitha Anoop, Adjudicating Officer

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Facts / Headnote

Penalty imposed on the Noticee for contravention of Regulations 3(a), (b), (c), (d) and 4(1), 4(2)(a), (b), (g) of PFUTP Regulations; allegation under Regulation 4(2)(e) not established

Provisions invoked

• s. 15
• s. 11B
• s. 11
• s. 15H
• s. 15J
• s. 15A
• s. 15F
• s. 28A

Regulations

• Reg. 3
• Reg. 4(1)
• Reg. 3(a)
• Reg. 4(2)(e)

Parties

• Anand Kalu Marathe

Holding

The AO found that the Noticee, as part of the Pabari-Parikh Group, indulged in manipulative trades contributing to artificial volume in the scrip of Gemstone Investments Limited, violating Regulations 3(a), (b), (c), (d) and 4(1), 4(2)(a), (b), (g) of the PFUTP Regulations, and imposed a penalty of Rs. 1,00,000 under Section 15HA of the SEBI Act. The allegation under Regulation 4(2)(e) (price manipulation) was not established.

Full text

In the matter of Gemstone Investments Limited Page 2 of 15 2. The Adjudicating Officer (hereinafter referred to as ‘AO’) of SEBI in his order dated November 28, 2014 (hereinafter referred to as ‘AO order’) concluded that certain entities including Anand Kalu Marathe (hereinafter referred to as ‘Noticee / by name’) has created artificial volume in the scrip of Gemstone and imposed penalties accordingly. The aforesaid AO order was challenged by the Noticee in the Hon’ble Securities Appellate Tribunal (hereinafter referred as ‘SAT’) in Appeal No. 139 of 2015 and the SAT vide order dated March 18, 2016 (herein after referred to as ‘SAT Order’) set aside the AO order with respect to the Noticee and restored the matter to the file of AO.

In the matter of Gemstone Investments Limited Page 3 of 15 and Unfair Trade Practices relation to securities market), 2003 (hereinafter referred to as the ‘PFUTP Regulations’) is being relied upon in the instant proceedings.

In the matter of Gemstone Investments Limited Page 4 of 15 Client Name KYC Relation Fund Moveme nt Share movement through off market Client Name KYC Relation Fund Movement Share movement through off market 3.Spectrum Chemicals Pvt. Ltd Common address as that of Khodiyar Industry (Ramniklal Patel). Ramniklal Patel has same address as that of sl.no. 15 who has share and fund movement with sl. no. 16. 19.Prem Mohanlal Parikh Sl. no. 19 is cousin of sl. no.16. Common email with sl. 30, 19 & 31. Sl. no. 22 is nominee of sl. no.19. BR* with sl. no. 5, 6, 8, 9, 16, 22, 30, 31. With sl. no. 16, 22, 9. With sl. no. 16, 22, 9, 5, 6, 22, 30, 31. 4.Amar Premchand Walmiki With Sl. No. 12, 17, 16, 11, 18, 26, 25, With Sl. No. 16, 7, 11, 12, 24, 27, 20.Devendra Suresh Gupta Has traded with sl. no. 2, 5, 19 & 30, who all have off market share and fund movement with sl. no. 16. 5.Bharat Shantilal Thakkar Sl. no. 16 is his nephew. Same address with sl. no.16. Sl. no. 16 is his nominee. Joint a/c with sl. no. 16. BR* with sl. no. 6, 8, 9, 19, 22, 30, 31. With sl. no. 16, 19, 30. With sl. no. 16, 12. 21.Nareshbh ai Devabhai Patel sl. no. 21 is the client of Samir Shah, who has off market transfer with Amar Premchand Walmiki and who in turn has off market transfer with sl. no. 16. 6.Bipin Jayant Thaker Same Tel. no. with sl. no. 16. BR* with sl. no. 5, 8, 9, 16, 19, 22, 30, 31, With sl. no. 16. With sl. no. 8, 16, 19, 22. 22.Hemant Madhusuda n Sheth Sl. no. 16 & 22 both directors of Rajnandi Yarn

Source: SecMarx — sebi:Order/AA/JR/2020-21/9441. 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.