sebi:Order/KS/AS/2021-22/12235-12247
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Facts / Headnote
Penalties imposed under Section 15HA of the SEBI Act, 1992 for violation of PFUTP Regulations, 2003
Provisions invoked
- s. 11
- s. 15
- s. 11(1)
- s. 15H
- s. 15J
- s. 28A
Regulations
- Reg. 3
- Reg. 4
- Reg. 13
- Reg. 4(1)
- Reg. 3(a)
- Reg. 3(b)
- Reg. 4(2)(a)
- Reg. 4(2)(e)
- Reg. 3(d)
- Reg. 3(a)(b)(c)
- Reg. 3(c)
Holding
Noticees Chandrakant B Shah, Ajay Ravindra Shah and Santosh Vasant Bhelekar manipulated the scrip price of Aadhaar Ventures India Ltd and created a misleading appearance of trading during Patch-1 by positive LTP trades in violation of Regulations 3(a)(b)(c)(d), 4(1), 4(2)(a) and 4(2)(e) of PFUTP Regulations, 2003, and monetary penalties of Rs. 1,00,000, Rs. 1,50,000 and Rs. 2,00,000 respectively were imposed under Section 15HA.
Full text
Adjudication order in the matter of Aadhaar Ventures India Ltd Page 2 of 71 January 01, 2009 to August 1, 2011 was identified during which the price in the scrip increased from Rs. 1.80 to a high of Rs. 87.10 and closed at Rs. 77.15. Pursuant to the investigation, SEBI inter alia alleged that the following 18 entities who were observed to be connected to each other viz. Chandrakant B Shah, Ajay Ravindra Shah, Santosh Vasant Bhelekar, Saurabh Kumar Rasiklal Gandhi, V and R Yarns Private Limited, Kinita Real Estate Private Limited, Gajpal Buildinfra Private Limited, Grantview Properties Private Limited, Monaecum Properties Private Limited, Jasmin Susilkumar Bajoriya, Indivar Traders Private Limited, Abijah Real Estate Pvt Ltd, Jignesh Chandrakant Shah, Moss Traders Pvt Ltd, Ailish Traders Pvt Ltd, Jeshna Mulltitrade Pvt Ltd, Addo Constructions Pvt Ltd, Sunlight Commotrade Pvt Ltd manipulated the scrip price of AVIL and created a misleading appearance of trading in the scrip during Patch 1 by such trades in violation of Regulations 3(a)(b)(c)(d), 4(1), 4(2)(a) and 4(2)(e) of SEBI (Prohibition of Fraudulent and Unfair Trade Practices) Regulations, 2003 (hereinafter referred to as PFUTP Regulations, 2003). Accordingly, adjudication proceedings was initiated against the abovementioned 18 entities under Section 15HA of the SEBI Act, 1992 for the aforesaid alleged violations. Subsequently, vide Adjudication Order dated May 19, 2021, the adjudication proceedings against the following
Adjudication order in the matter of Aadhaar Ventures India Ltd Page 3 of 71 following 5 entities viz. Moss Traders Pvt Ltd, Ailish Traders Pvt Ltd, Jeshna Mulltitrade Pvt Ltd, Addo Constructions Pvt Ltd, Sunlight Commotrade Pvt Ltd in terms of Section 15-I of the SEBI Act, 1992 read with Rule 4 of the Adjudication Rules, 1995 to show cause as to why an inquiry should not be held against them and why penalty, if any, under Section 15HA of the SEBI Act, 1992 be not imposed on the Noticees. The SCN is summarized below:
Adjudication order in the matter of Aadhaar Ventures India Ltd Page 4 of 71 The PV chart of AVIL on BSE during IP is as under:
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Source: SecMarx — sebi:Order/KS/AS/2021-22/12235-12247. 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.