sebi:Order/VV/AA/2021-22/12070-12078
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Facts / Headnote
Penalties imposed on all nine Noticees for violations of Section 12A of the SEBI Act and Regulations 3(a), 3(b), 3(c), 3(d), 4(1), 4(2)(a), 4(2)(b), 4(2)(e) of PFUTP Regulations, 2003 (and additionally Regulation 4(2)(g) for Amol Kokane).
Provisions invoked
- s. 15
- s. 12A
- s. 15H
- s. 15I
- s. 15J
- s. 15F
- s. 28A
- s. 24
Regulations
- Reg. 4
- Reg. 3
- Reg. 2(1)(c)
- Reg. 4(a)
- Reg. 3(a)
- Reg. 4(2)(g)
Parties
- Amol Kokane
- Falguni Jayesh Shah
- Hardik Mithani
- Priyanka Darshan Desai
- Inventure Growth & Securities Ltd
- SPJ Stock Broker Pvt Ltd
- DKG Securities Pvt Ltd
- APL Infrastructure Ltd
- Milanbhai Mithani
Holding
The Adjudicating Officer held that all nine Noticees violated Section 12A of the SEBI Act and Regulations 3(a)-(d), 4(1), 4(2)(a), 4(2)(b), 4(2)(e) of the PFUTP Regulations, 2003 (with Amol Kokane additionally violating Regulation 4(2)(g)) by engaging in synchronized, circular, and reversal trades in PSTL shares that amounted to fraud in the securities market, and imposed monetary penalties under Section 15HA.
Full text
Page 2 of 90 the company”) during the period from June, 2008 to December, 2008 (hereinafter referred to as ‘investigation period’).
Page 3 of 90 promoters and the then largest shareholder of PSTL, was one of the major beneficiaries of the said manipulation and appeared to have masterminded the forgery. It was further observed that several persons/ entities directly and indirectly related to Mr. Nirmal Kotecha had purchased shares of PSTL on BSE and NSE during December 15-19, 2008 and sold these shares on December 22, 2008, i.e., after the price rise in the PSTL shares on December 22, 2008 consequent to the publication of news about the forged SEBI letter. It was also found that some persons/ entities had sold PSTL shares on December 22, 2008 and bought back the shares at lower prices on the same day taking advantage of both the price rise which occurred due to publication of the forged SEBI letter as well as the price fall which occurred due to a clarification on media reports on Open Offer provided by Mr. P.S. Saminathan to the stock exchanges (BSE and NSE) that the company had not received any communication directing Mr. P. S. Saminathan to make open offer.
Page 4 of 90 was observed that Amol Kokane, Falguni Jayesh Shah, Hardik Mithani, Priyanka Darshan Desai, Inventure Growth & Securities Ltd, SPJ Stock Broker Pvt Ltd, DKG Securities Pvt Ltd., APL Infrastructure Ltd and Milanbhai Mithani (hereinafter collectively referred to as ‘Noticees’) were among the said entities who were involved in the manipulation in the scrip of PSTL. In view of all of the above, Adjudication Proceedings were initiated against the Noticees and it was alleged that the Amol Kokane had violated the provisions of Section 12A of SEBI Act and Regulation 3(a), 3(b), 3(c), 3(d), 4(1), 4(2)(a), 4(2)(b), 4(2)(e) and 4(2)(g) of PFUTP Regulations, 2003, while Falguni Jayesh Shah, Hardik Mithani, Priyanka Darshan Desai, Inventure Growth & Securities Ltd, SPJ Stock Broker Pvt Ltd, DKG Securities Pvt Ltd., APL Infrastructure Ltd and Milanbhai Mithani were alleged to have violated the provisions of Section 12A of SEBI Act and Regulation 3(a), 3(b), 3(c), 3(d), 4(1), 4(2)(a), 4(2)(b) and 4(2)(e) of PFUTP Regulations, 2003
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Source: SecMarx — sebi:Order/VV/AA/2021-22/12070-12078. 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.