sebi:Order/SR/AS/2020-21/8827-8863/59-95

SEBI · SEBI · 2011-05-10 · Sangeeta Rathod, Adjudicating Officer

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Facts / Headnote

Penalties imposed: Rs. 35,00,000 jointly and severally on Noticees 1, 3 to 24, 26 to 29, 31 to 34 and 37 for PFUTP/SEBI Act violations; Rs. 25,000 each on Noticees 1 to 35 for SCRA violations; Rs. 2,50,000 on Noticee 36 for SCRA violations.

Provisions invoked

• s. 15
• s. 19
• s. 12A
• s. 15H
• s. 13
• s. 16
• s. 15J
• s. 28A
• s. 23J
• s. 18
• s. 23
• s. 23H
• s. 17
• s. 2(31)

Regulations

• Reg. 3
• Reg. 3(a)

Holding

The Noticees were found liable for violating section 12A(a),(b),(c) of the SEBI Act and regulations 3(a),(b),(c),(d) and 4(1) of the PFUTP Regulations by cornering RII category shares in three IPOs through connected entities funded by Pankaj J. Shah HUF, and for violating section 2(i)(a) r/w sections 13, 16 and 18 of the SCRA through off-market share transfers without payment of consideration.

Full text

Adjudication order in the matter of trading activities of Pankaj J. Shah HUF and connected entities in the scrips of L&T Finance Holdings Ltd., Tree House Education Ltd. and Future Ventures India Ltd. Page 2 of 51 20 Hasumatiben Manilal Parmar AUBPP3083B EAD/SR/AS/AO/8846/78 21 Premlata Bhagavendas Koshti AWYPK0197L EAD/SR/AS/AO/8847/79 22 Dakshaben Banavarilal Sharma BPPPS5841L EAD/SR/AS/AO/8848/80 23 Ansoyaben Rajendrakumar Shukal BPPPS5842K EAD/SR/AS/AO/8849/81 24 Chhaya Rakesh Sable BRBPS8409L EAD/SR/AS/AO/8850/82 25 Ritaben Bharatbhai Shah APFPS4223R EAD/SR/AS/AO/8851/83 26 Rinaben Premchandabhai Parmar AUBPP3074E EAD/SR/AS/AO/8852/84 27 Geetaben Narottambhai Parmar AUBPP3076G EAD/SR/AS/AO/8853/85 28 Sangitaben Bhupeshbhai Bhavsar AOJPB6507Q EAD/SR/AS/AO/8854/86 29 Vijay Mangaldas Shah (HUF) AAGHV9796J EAD/SR/AS/AO/8855/87 30 Krupa Pankaj Shah AGDPS3989F EAD/SR/AS/AO/8856/88 31 Chandresh Kanaiyalal Bijava ALPPB2894R EAD/SR/AS/AO/8857/89 32 Manjulaben Chandreshbhai Bijava AOIPB3569H EAD/SR/AS/AO/8858/90 33 Lekhaben Dineshbhai Shah APCPS2087N EAD/SR/AS/AO/8859/91 34 Mukesh Chandreshbhai Bijava AUMPB7059C EAD/SR/AS/AO/8860/92 35 Shah Arpit Pankajkumar BGMPS0141K EAD/SR/AS/AO/8861/93 36 Shah Swara Pankajkumar AYCPS2791Q EAD/SR/AS/AO/8862/94 37 Jayesh Virchandbhai Shah (HUF) AAFHJ7084J EAD/SR/AS/AO/8863/95

Adjudication order in the matter of trading activities of Pankaj J. Shah HUF and connected entities in the scrips of L&T Finance Holdings Ltd., Tree House Education Ltd. and Future Ventures India Ltd. Page 3 of 51 December 31, 2011 (in short IP). However, wherever deemed necessary, IA has made reference outside the IP. IA observed that certain entities had applied in various IPOs and transferred the proceeds from sale of the shares allotted in the IPOs to Pankaj J. Shah HUF (hereinafter referred to as Noticee 1), so that Mr. Pankaj J. Shah (hereinafter referred to as Noticee 2) who is father of Ms. Swara P Shah (hereinafter referred to as Noticee 36) and Karta of Noticee 1, and concluded that prima facie, Noticee 1 appears to have cornered the shares meant for Retail Individual Investor (in short RII) category in IPOs of Tree House Education Ltd. (in short TH), L&T and Future Ventures India Ltd (in short FV).

Adjudication order in the matter of trading activities of Pankaj J. Shah HUF and connected entities in the scrips of L&T Finance Holdings Ltd., Tree House Education Ltd. and Future Ventures India Ltd. Page 4 of 51 (hereinafter referred to as Noticee 22), Ansoyaben Rajendrakumar Shukal (hereinafter referred to as Noticee 23), Chhaya Rakesh Sable (hereinafter referred to as Noticee 24), Ritaben Bharatbhai Shah (hereinafter referred to as Noticee 25), Rinaben Premchandabhai Parmar (hereinafter referred to as Noticee 26), Geetaben Narottambhai Parmar (hereinafter referred to as Noticee 27), Sangitaben Bhupeshbhai Bhavsar (hereinafter referred to as Noticee 28), Vijay Mangaldas Shah (HUF) (hereinafter referred to as Noticee 29), Krupa Pankaj Shah (hereinafter referred to as Noticee 30), Chandresh Kanaiyalal Bijava (hereinafter referred to as Noticee 31), Manjulaben Chandreshbhai Bijava (hereinafter referred to as Noticee 32), Lekhaben Dineshbhai Shah (hereinafter referred to as Noticee 33), Mukesh Chandreshbhai Bijava (hereinafter referred to as Noticee 34), Shah Arpit Pankajkumar (hereinafter referred to as Noticee 35), Noticee 36 and Jayesh Virchandbhai Shah (HUF) (hereinafter referred to as Noticee 37). (Noticees 1 to 37 are hereinafter collectively referred to as Noticees) 2.2 alleged violation of section 2(i)(a) read with (in short r/w) sections 13, 16 and 18 of the Securities Contracts (Regulation) Act, 1956 (in short the SCRA, 1956) by Noticees 1 to 36.

Source: SecMarx — sebi:Order/SR/AS/2020-21/8827-8863/59-95. 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.