sebi:SO/EFD-2/SD/315/NOVEMBER/2019
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Facts / Headnote
Settled
Provisions invoked
- s. 11B
- s. 15J
Regulations
- Reg. 25
- Reg. 34
- Reg. 23
Parties
- Jayesh P. Khandwala
- Jayesh Khandwala HUF
Holding
The Section 11B and adjudication proceedings against Jayesh P. Khandwala and Jayesh Khandwala HUF for alleged irregularities in the IPOs of IDFC, Sasken and Suzlon were settled qua the applicants upon payment of Rs 98,37,035 as settlement amount and Rs 1,32,54,527 as disgorgement including interest, with SEBI barred from further enforcement action for the said default subject to conditions.
Full text
Settlement order with respect to Jayesh P. Khandwala and Jayesh Khandwala HUF in the matter of alleged irregularities in IPO of IDFC, Sasken and Suzlon Page 2 of 3
Settlement order with respect to Jayesh P. Khandwala and Jayesh Khandwala HUF in the matter of alleged irregularities in IPO of IDFC, Sasken and Suzlon Page 3 of 3
a) A group of financiers provided finance to key operators towards making multiple applications in the IPOs and cornered large number of shares reserved for RIIs; b) Subsequent to the receipt of IPO allotment, the shares were transferred by the allottees in off-market transactions to the demat accounts of their key operators. The key operators, in turn, transferred the shares to the financiers who had originally made available the funds for executing the game plan; c) Later on the shares allotted in the IPOs were sold upon its listing thereby realizing the windfall gain of the price difference between IPO price and the listing price.
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Source: SecMarx — sebi:SO/EFD-2/SD/315/NOVEMBER/2019. 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.