sebi:SD/AO/10/2009
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Facts / Headnote
Penalty of Rs. 5,00,000 imposed on Umesh Choukekar for failure to furnish information to the Investigating Authority of SEBI
Provisions invoked
- s. 11
- s. 15A
- s. 15
- s. 15J
- s. 11C
Parties
- Umesh Choukekar
Holding
The Noticee, Umesh Choukekar, was held guilty of failing to comply with summons/notices dated March 15, 2007 and April 4, 2007 issued by the Investigating Authority of SEBI, and a penalty of Rs. 5,00,000 was imposed under Section 15A(a) of the SEBI Act.
Full text
Page 2 of 8 APPOINTMENT OF ADJUDICATING OFFICER 4. Ms. Babita Rayudu was appointed as the Adjudicating Officer vide order of SEBI dated June 19, 2007 under Section 15-I of the Act r/w Rule 3 of SEBI (Procedure for holding Inquiry and Imposing Penalty by Adjudicating Officer) Rules, 1995 (hereinafter referred to as the Adjudicating Rules) to inquire into and adjudge under Section 15A (a) of the SEBI Act, the alleged violation of the provisions of Section 11C (2) & 11C (3) of the SEBI Act.
Page 3 of 8 January to September 2005 apparently to create buying interest in the scrip and were also found to be involved in influencing the price of the scrip. The Noticee received 10,00,000 shares from Laxman Singh Saijari and 20,00 000 shares from Patric Xess on March 31, 2005 and received 10,00,000 shares from Deepak Sharma on April 1, 2005 in the off-market transactions. These shares received from company connected persons were ultimately utilized towards fulfilling market obligations of Ajit Suryavanshi and other connected clients of the Mahesh Mistry group. The details of trading of the connected group of clients are contained in Annexure A annexed to the SEBI letter dated February 13, 2007 available on the record. The connected group of clients accounted for 60.23% and 54.60% of gross purchases and gross sales respectively during the period January 25, 2005 to September 16, 2005. Out of this, about 55% of gross purchases and 61.77% of gross sales of these connected clients were among themselves. These clients were also involved in 60 structured trades among themselves with a total traded volume of 2894051 shares accounting for 2.37% of gross traded quantity wherein buy and sell order rates and quantities were same and time difference between buy and sell orders was less than one minute.
Page 4 of 8 2005 including date, name of counter party, quantity & price and also copies of demat accounts for the said period. iii. All bank account statements for the period January 01, 2005 to December 31, 2005 showing details of payments made/received for the purchase/sale of shares of MCL & financing received, if any, for the purchase of shares.
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Source: SecMarx — sebi:SD/AO/10/2009. 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.