sebi:TCN/105/ISD/03/07
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Facts / Headnote
Interim order dated April 27, 2006 confirmed as against Shri Saumil A Bhavnagari; restraint from buying, selling or dealing in securities market continued
Provisions invoked
- s. 11
- s. 19
- s. 12A
- s. 11C
- s. 144(1)
Regulations
- Reg. 3
- Reg. 199
- Reg. 200
Parties
- Shri Saumil A Bhavnagari
Holding
The ad interim ex-parte order dated April 27, 2006 is confirmed against Shri Saumil A Bhavnagari for violation of Regulation 3 of FUTP Regulations, 2003 as an aider/abettor and conduit in cornering IPO shares meant for retail investors.
Full text
2 Investors Associations, certain complaints and requests for investigation relating to irregularity in IPOs. SEBI appointed an Investigating Authority under Section 11C of the SEBI Act and the Investigating Authority thereafter, carried out a detailed investigation by calling for data from various entities such as Depository participants, Banks, Issuer Companies, the Depositories and the Registrars to the Issues etc. During the investigation, it was found that large numbers of multiple dematerialized accounts with common addresses were opened in the name of benami or fictitious entities and/or persons by a few operators who have played major role in cornering the shares meant for retail investors.
3 listing and commencement of trading on the stock exchanges thereby profiting from the higher listing price as compared to the issue price. Even in a few cases where the financiers may not have actually sold the shares in the market, made notional gains from the higher listing price. It was suspected that Shri Saumil A Bhavnagari (hereinafter referred to as Shri Saumil) might have financed Roopalben Panchal (hereinafter to be referred as ‘Roopal’) in the following transactions:
4 issue price of the respective IPOs. The calculations with reference to Shri Saumil are given below. 5. The above mentioned data, prima facie, demonstrates the involvement of Shri Saumil in the irregularities relating to initial public offerings and goes to show, prima facie, that Shri Saumil violated the provisions of the SEBI Act and the Rules and Regulations, framed there under for protecting the interest of investors and the integrity of the Securities Market.
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Source: SecMarx — sebi:TCN/105/ISD/03/07. 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.