sebi:SD/AO/72/2010
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Facts / Headnote
Noticee found guilty; penalty of Rs. 5,00,000 imposed under Section 15A(a) of the SEBI Act
Provisions invoked
- s. 11
- s. 15A
- s. 15
- s. 15J
- s. 11C(2)
Parties
- Mr. Jagdish J Pandya
Holding
The Noticee, Mr. Jagdish J Pandya, was held guilty of failing to comply with three summons issued by the Investigating Authority of SEBI and was imposed a penalty of Rs. 5,00,000 under Section 15A(a) of the SEBI Act for failure to provide necessary information/documents.
Full text
Page 2 of 12 the Noticee’s involvement in manipulation in the market in the scrip of KCL and offer Noticee’s comments in detail alongwith the required information/documents. It is alleged that the Noticee failed to comply with the said summons and failed to submit the information/documents to the Investigating Authority. It is observed from the available records that Noticee had duly received the said summons, the details of which are produced in later part of this order.
Page 3 of 12 be pasted. It be noted that another adjudication proceeding was initiated against the Noticee in the said scrip for violation of certain regulations of SEBI (Prohibition of Fraudulent and Unfair Trade Practices) Regulations, 2003 (hereinafter referred to as ‘PFUTP Regulations’). It be noted that the notice for violations of PFUTP Regulations was delivered to the Noticee and the Notice for violations of Summons was sent at the same address where SCN for violations of PFUTP Regulations was sent. Adequate efforts have been made to deliver the said SCN to Noticee and inspite of the same, the said SCN could not be delivered.
Page 4 of 12 a) It was observed that during the period February 10, 2005 to September 16, 2005, a group of clients including the Noticee were observed to be transferring shares among themselves in off market & dealing in the scrip of KCL in the market. These clients were found to be connected to each other & some of these clients were also observed to be connected to the KCL. Details of market & off-market transactions were provided to Noticee as Annexure A to the Letter & Summons dated March 07, 2007. The group purchased 81,02,185 shares accounting for 24.43% of gross purchases and sold 64,13,786 shares accounting for 19.45% of gross sales of the market. The group was also observed to be involved in 228 trades which were executed at a price difference of 0.5% or more than the last traded price or last closing price. The said was provided to Noticee as Annexure B to Letter and Summons dated March 7, 2007. It was alleged that Noticee during the investigation period, purchased 15000 shares through Vijay B Shah and shared common address with other connected entities such as Giridharbhai Vagadiya and Kalpesh Babariya who were also observed to be trading in market and transferring shares in off market to Vijay B Shah. Vijay B Shah was observed to be transferring shares through off market deals to various entities of the group who subsequently sold these shares in the market.
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Source: SecMarx — sebi:SD/AO/72/2010. 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.