sebi:SD/AO/50/2009
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Facts / Headnote
Penalty of Rs. 25,00,000 imposed on the Noticee under Section 15A(a) of the SEBI Act, 1992
Provisions invoked
- s. 11
- s. 15A
- s. 15
- s. 15J
- s. 11C(2)
Parties
- Santosh Narvekar
Holding
Shri Santosh Narvekar failed to comply with summons dated February 13, 2007 and March 9, 2007 issued by the Investigating Authority, violating Sections 11C(2) and 11C(3) of the SEBI Act, 1992. A penalty of Rs. 25,00,000 under Section 15A(a) was imposed on him.
Full text
Page 2 of 8 that the Noticee failed to comply with the said summons/Notices and failed to submit the information/documents to the Investigating Authority.
Page 3 of 8 a) It was observed that during the period from January 2005 to September 2005 the price of the scrip of MCL moved from Rs.5.25/- to Rs.41.10/-. And the volume in the scrip also shot up dramatically. Entities suspected to be connected with the company viz., Nirmal Jain, Laxman Saijari, Mahendra Gopal Gorivale, Patric Xess and Deepak Sharma purchased around 1,31,65,000 shares of the captioned entity on March 5, 2005 and transferred 80 lacs shares in the off market to clients viz., Dadasaheb Gavhane, Prakash Hanumant Yadav and Umesh Choukekar belonging to Mahesh Mistry Group who have heavily dealt in the market as well as in the off market during the period 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 shares received from company connected persons were ultimately utilized towards fulfilling market obligations of other connected clients of the Mahesh Mistry group including the Noticee. 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 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 s
Page 4 of 8 information/documents. The queries contained in the said summons are as following: i. Relationship with the company MCL, its promoters, directors & associate companies & all individuals/entities mentioned in Annexure A annexed to the SEBI letter dated February 13, 2007 available on the record. ii. Details of purchase, sale & off market transactions done in the scrip of MCL for the period from January 01, 2005 to December 31, 2005 including date, name of broker, 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/50/2009. 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.