sebi:SD/AO/115/2009
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Facts / Headnote
No penalty levied on Noticee; matter disposed of
Provisions invoked
- s. 15
- s. 11
- s. 15H
Regulations
- Reg. 4(1)
- Reg. 5
Parties
- Akshay Shah
Holding
The Adjudicating Officer held that the Noticee was a minor at the time of the alleged manipulative transactions in March 2005 and therefore no penalty could be imposed on him. The matter was accordingly disposed of without penalty.
Full text
Page 2 of 6 Shah (hereinafter referred to as “Noticee”) as Annexure 1 to Show Cause Notice (the details of which are discussed in para 6 of this order). Investigation by SEBI also observed that large numbers of off market trades were carried out in the scrip of KCL by the connected entities. The connection between these entities and their linkages were provided to Noticee as Annexure 2 to Show Cause Notice. The shares received in the off market were later used to complete the market obligations of the various connected entities. The transfer of shares of KCL in the off market deals between several entities further established linkages between the entities. It is also alleged that the connected entities entered into off market deals amongst themselves during the relevant period and by entering into trading amongst themselves, the said connected entities allegedly brought sudden spurt in the volume and price of the scrip. These volumes were adequate enough to induce the other investors to deal in the scrip. It is alleged that the Noticee also forms a part of the said connected entities who have acted in tandem with each other in manipulating the scrip of KCL.
Page 3 of 6 violation of the provisions of Regulations 4(1), 4(2)(a), 4(2)(b), 4(2)(e) & 4(2)(g) of PFUTP Regulations. 5. Subsequently, the then Adjudicating Officer was sent on deputation and thereafter the undersigned was appointed as the Adjudicating Officer in the instant matter vide SEBI order dated November 23, 2007.
Page 4 of 6 and Mr. Virang Shah Authorised Representative appeared before me and reiterated the earlier submissions made in the reply dated July 04, 2008.
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Source: SecMarx — sebi:SD/AO/115/2009. 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.