sebi:Order/VV/AA/2021-22/12804
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Facts / Headnote
Penalty of Rs. 2,00,000 imposed on the Noticee under Section 15HA of the SEBI Act
Provisions invoked
- s. 15
- s. 12A
- s. 15H
- s. 15I
- s. 15J
- s. 15F
- s. 28A
Regulations
- Reg. 4
- Reg. 3
- Reg. 4(a)
- Reg. 3(a)
Parties
- Amit Navinchandra Joshi
Holding
The Noticee viz. Amit Navinchandra Joshi violated Section 12A of the SEBI Act and Regulations 3(a), 3(b), 3(c), 3(d), 4(1), 4(2)(a), 4(2)(d) and 4(2)(e) of the PFUTP Regulations, 2003 and is liable to a monetary penalty of Rs. 2,00,000 under Section 15HA of the SEBI Act.
Full text
Page 2 of 22 (hereinafter referred to as “SAST Regulations”) for an additional 20% stake at a price not less than Rs. 250/- within 14 days, for allegedly violating creeping acquisition norms. With the reports in the media appearing about the impending offer at Rs. 250/-, the price of the shares of PSTL increased on December 22, 2008, when the stock markets opened for the day. On December 22, 2008, PSTL first informed BSE Limited (hereinafter referred to as “BSE”) and National Stock Exchange of India Limited (hereinafter referred to as “NSE”) that the company had not received any communication from SEBI regarding the media reports on Open Offer. BSE disseminated the said disclosure made by PSTL at 10:28:04 AM on December 22, 2008 on its website, while NSE disseminated the same at 10:30:00 AM on the same day.
Page 3 of 22 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 22 the market. Investigation further revealed that the Noticee transferred funds from his account to the account of one Mr. Deepak Mali, client of ICMPL who also traded in the scrip of PSTL. It was further observed from the details of trades of the Noticee that Nirmal Kotecha himself and an entity related/associated with Nirmal Kotecha were the counterparties of his trades. In view of all of the above, Adjudication Proceedings were initiated against the Noticee and it was alleged that the Noticee 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)(d) and 4(2)(e) of PFUTP Regulations, 2003.
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Source: SecMarx — sebi:Order/VV/AA/2021-22/12804. 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.