sebi:SD/AO/52/2009
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Facts / Headnote
Penalty of Rs. 10,00,000 imposed on the Noticee; copies of order to be sent to Noticee and SEBI
Provisions invoked
- s. 11
- s. 15A
- s. 15
- s. 15J
- s. 11C(2)
Parties
- Vijay Suryavanshi
Holding
Shri Vijay Suryavanshi failed to provide necessary information to the Investigating Authority in response to summons dated March 16, 2007 and April 4, 2007 in violation of Sections 11C(2) and 11C(3) of the SEBI Act, 1992. A penalty of Rupees Ten Lakhs (Rs. 10,00,000/-) was imposed under Section 15A(a) of the SEBI Act, 1992.
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 15 A(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 9. Brief facts giving rise to the present proceedings are as under: 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 cli
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/52/2009. 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.