sebi:Order/JS/PS/2021-22/14959-14980

SEBI · SEBI · 2011-12-28 · Jeevan Sonparote, Adjudicating Officer

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Facts / Headnote

Noticees held not liable; no monetary penalty imposed and proceedings effectively dropped

Provisions invoked

• s. 12A
• s. 15H
• s. 15

Regulations

• Reg. 4
• Reg. 3
• Reg. 6
• Reg. 7
• Reg. 2
• Reg. 3(a)
• Reg. 15
• Reg. 1
• Reg. 50

Holding

The twenty-two Noticees are not liable for monetary penalty under Section 15HA and/or Section 15HB of the SEBI Act, as applicable, for alleged fictitious structured, synchronized and circular trades in Bharatiya Global Infomedia Limited on listing day.

Full text

Adjudication Order in respect of twenty two entities in the matter of Bharatiya Global Infomedia Limited Page 2 of 87 ₹75 to ₹82 for 67.20 lakh equity shares of ₹10 each constituting 42.42% of its post issue paid-up capital. Almondz Global Securities Limited ("Almondz / Merchant Banker") was the Book Running Lead Manager for the issue and the registrar to the issue was Karvy Computers Share Pvt. Ltd (Karvy). CARE had assigned IPO Grade of '2' to BGIL IPO i.e. 'Below Average Fundamentals'. The issue opened for bidding on July 11, 2011 and closed on July 14, 2011. As per the minutes of the meeting between BGIL, Almondz and Karvy, the issue had received 5,098 valid applications for 98,90,775 equity shares (after technical rejections, including cheque returns / withdrawals), resulting in 1.47 times subscription. BGIL in consultation with Almondz had decided to issue the shares at a price of ₹82 per share. Thus, ₹55.10 crores was raised from the market. The allotment of shares took place on July 21, 2011 after which, the shares were listed and admitted to dealings on National Stock Exchange of India Ltd. (NSE) and BSE Ltd. (BSE) on July 28, 2011. On NSE 4,75,78,807 shares were traded and on BSE 4,07,25,468 shares were traded on the listing day i.e. on July 28, 2011. In total, 8.83 crore shares were traded on BSE & NSE and only 6.5% of shares were delivery based trades.

Adjudication Order in respect of twenty two entities in the matter of Bharatiya Global Infomedia Limited Page 3 of 87 referred to as ‘SEBI’) conducted an investigation into the alleged irregularities in the scrip of BGIL and into the possible violation of the SEBI Act, 1992 (hereinafter referred to as ‘the Act’) and Regulations made there under. The investigation was primarily focused on the IPO of equity shares by BGIL and its subsequent trading on the listing day i.e. July 28, 2011. While the investigation in the matter were ongoing, SEBI vide an ad-interim ex-parte order dated December 28, 2011, inter-alia, issued the following directions:

Adjudication Order in respect of twenty two entities in the matter of Bharatiya Global Infomedia Limited Page 4 of 87 (Noticee No. 4/Korp), Wheelers Developers Private Limited. (Noticee No. 5 /Wheelers), Divya Drishti Merchants Private Limited (Noticee No. 6/ Divya Drishti Merchants Private Limited /DDM), Divya Drishti Traders Private Limited (Noticee No. 7/ Divya Drishti Traders Private Limited /DDT), Anoop Jain HUF (Noticee No. 8/ Anoop Jain HUF), Shri Anoop Vimal Jain (Noticee No. 9/ Anoop Jain), Smt Ritu Jain (Noticee No. 10 / Ritu Jain /Ritu), Vimgi Investments Private Limited (Noticee No. 11 / Vimgi Investments Private Limited/ Vimgi), Ms. Shikha Somani (Noticee No. 12/ Shikha Somani / Shikha), Prem Somani Share Brokers Private Limited (Noticee No. 13 / Prem Somani Share Brokers Private Limited /Prem Somani), Nimit Jayendra Shah (Noticee No. 14/ Nimit Jayendra Shah /Nimit), Shaswat Stock Brokers P.Ltd (Noticee No. 15/ Shaswat Stock Brokers P.Ltd / Shaswat), Bahubali Stock Broking Limited (formerly known as Shree Bahubali International Limited) (Noticee No. 16/ Bahubali /SBIL), Centillion Capital Private Limited (formerly known as PELF Finstock Limited) (Noticee No. 17 /Pelf), Swift Tie-up Private Limited (Noticee No. 18 / Swift), Lookline Tradelinks Pvt Ltd (formerly known as Marutinandan Infosolutions Private Limited (Noticee No. 19 / Lookline), Aashrit Capital Ltd (formerly known as Jalan Cement Works Limited) (Noticee No. 20/Aashrit), Orbit Financial Consultants Priv

Source: SecMarx — sebi:Order/JS/PS/2021-22/14959-14980. 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.