sebi:PB/AO-30/2012
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Facts / Headnote
Penalty of Rs. 4,00,000 imposed under section 15HA of SEBI Act for violation of regulations 4(1), 4(2)(a), 4(2)(b) and 4(2)(g) of PFUTP Regulations
Provisions invoked
- s. 15
- s. 15H
- s. 15J
Regulations
- Reg. 4
- Reg. 3
- Reg. 4(1)
- Reg. 4(a)
- Reg. 2
- Reg. 47
- Reg. 4(2)(a)
- Reg. 4(2)(g)
- Reg. 4(2)(b)
Parties
- Jagadish Ramashankar Jani
Holding
The Noticee violated regulations 4(1), 4(2)(a), 4(2)(b) and 4(2)(g) of the PFUTP Regulations by indulging in synchronized and circular trading in the scrip of FDIL creating artificial volume and misleading appearance of trading, and is liable to monetary penalty under section 15HA of the SEBI Act.
Full text
Page 2 of 22 3. The role of the entities who had traded in the scrip of FDIL was scrutinized. It was observed during the investigation that certain entities viz. Akhilesh Kamla Prasad, Balasaheb J Kamble, Dinesh K Pandey, Jagdish R Jani, Kirit S Gandhi, Vijay K Bohra, Dilip K Pawar and Hiren Kirit Gandhi (hereinafter referred as “Group”) had allegedly indulged in synchronization of deals/circular trading/fictitious trading in such a manner that led to creation of artificial volume and impacted the price of the scrip.
Page 3 of 22 SHOW CAUSE NOTICE, HEARING AND REPLY 6. Show Cause Notice No. EAD-7/PB/AK/21012/2011 dated June 30, 2011 (hereinafter referred to as “SCN”) was issued to the Noticee under rule 4(1) of the Rules to show cause as to why an inquiry should not be held and penalty be not imposed under section 15HA of SEBI Act for the alleged violation specified in the said SCN.
Page 4 of 22 inspection of documents. Acceding to the request of the Noticee, another opportunity of inspection of documents was granted to the Noticee on February 15, 2012 at SEBI, Head Office, Mumbai vide notice dated February 03, 2012. The AR appeared on February 15, 2012 and inspected the documents including the relevant portion of the investigation report on behalf of the Noticee. Further, vide notice dated February 03, 2012, it was advised to the Noticee to submit the reply to the SCN within 10 days from the date of inspection of documents. However, the Noticee chose to ignore the same.
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Source: SecMarx — sebi:PB/AO-30/2012. 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.