sebi:WTM/AB/EFD-1/DRA-1/20/2019-20
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Facts / Headnote
Violations established; Noticee No. 1, 2 and 3 restrained from accessing the securities market and prohibited from buying, selling or otherwise dealing in securities for a period of three (3) years with existing holdings including mutual fund units frozen
Provisions invoked
- s. 19
Regulations
- Reg. 3
- Reg. 2(1)(c)
- Reg. 4(1)
- Reg. 3(a)
Parties
- Gowdankunta Shilpa
- P Mukesh Kumar Kankaria
- Vinod Hari Mhatre
Holding
Noticee No. 1, 2 and 3 violated Regulation 3(a), (b), (c) & (d) and Regulation 4(1), 4(2)(a) & (e) of PFUTP Regulations, 2003 by manipulative price-setting trades in Mahavir Advanced Remedies Ltd. and were restrained from the securities market for three years.
Full text
Order in the matter of Mahavir Advanced Remedies Ltd. Page 2 of 13 3. The SCN was sent through speed post to Noticee 1, 2 and 3. However, the speed post to Noticee no. 1 and 3, returned undelivered. Delivery of SCN was effected on Noticee No. 3 through affixture at his last known address. For Noticee no. 1, service of SCN through affixture also failed due to incorrect address. Hence, service of SCN on Noticee no. 1 was made through paper publication in the Bengaluru edition of, The Times of India (English language), Rajasthan Patrika (Hindi language) and Vijay Karnataka (Kannada language), dated December 19, 2017.
Order in the matter of Mahavir Advanced Remedies Ltd. Page 3 of 13 Securities and Exchange Board of India v. Price Waterhouse (Civil Appeal No. 6003-6004/12) and order dated May 12, 2017 passed by Hon’ble SAT in the matter of Shri R. Ramalinga Raju v. SEBI.
Order in the matter of Mahavir Advanced Remedies Ltd. Page 4 of 13 allegations of fraud that is levelled against the Noticee requires high level of proof and establishment of mens rea. Reliance has been placed on judgment of the Supreme Court in the matter of Union of India vs. Chaturbhai M. Patel (AIR 1976 SC 712), SAT order dated August 12, 2011 in the matter of Parsoli Corporation vs. SEBI (Appeal no. 146/2011) and SAT order dated October 22, 2001 in the matter of Sterlite Industries Ltd. vs. SEBI (Appeal no. 20/2001),
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Source: SecMarx — sebi:WTM/AB/EFD-1/DRA-1/20/2019-20. 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.