sebi:WTM/AB/EFD-I/DRA-1/28/2018-19
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Facts / Headnote
Six Noticees found guilty; restrained from accessing the securities market and prohibited from buying, selling or otherwise dealing in securities for four years with existing holdings including mutual fund units frozen, effective immediately.
Provisions invoked
- s. 19
Regulations
- Reg. 4
- Reg. 3
- Reg. 4(1)
- Reg. 3(a)
Parties
- Ever Bright Trading Private Limited (earlier known as Mould Trading Private Limited)
- Mr. Prateek Shaileshbhai Patel
- Mr. Chintan Bharatbhai Kapadia
- Mr. Akshaykumar Aniruddh Pandya
- Mr. Keval Chandrakant Shah
- South Asia Portfolios Private Limited
Holding
The six Noticees were held guilty of violating Regulations 3(a),(b),(d) and 4(1), 4(2)(a) & 4(2)(e) of the SEBI (PFUTP) Regulations, 2003 and were restrained from accessing and dealing in the securities market for four years with existing holdings frozen.
Full text
Order in the matter of Golden Legand Leasing & Finance Limited Page 2 of 13 Kolkata through letter dated April 27, 2015 alleging that certain entities had used the stock exchange mechanism to generate Long Term Capital Gain Tax (LTCG) and GLLFL was one such scrip mentioned in the aforesaid letter.
Order in the matter of Golden Legand Leasing & Finance Limited Page 3 of 13 Pandya, Noticee no. 4 returned undelivered with the remark “Refused”. I note that refusal to accept notice is considered deemed service. Therefore, I observe that Noticee no. 2 and Noticee no. 4 also failed to appear for the personal hearing. Another date of hearing i.e. December 14, 2018 was granted to Ever Bright Trading Private Limited, Noticee no. 1 and South Asia Portfolios Private Limited, Noticee no. 6 as hearing notices were not delivered to these Noticees. The hearing notice was published in one English daily, Times of India and one Hindi daily, Nav Bharat Times on November 07, 2018 informing the Noticees no. 1 and 6 that hearing in the matter has been scheduled on December 14, 2018. The noticees failed to appear on the scheduled date.
Order in the matter of Golden Legand Leasing & Finance Limited Page 4 of 13 volumes were high for the period October 01, 2014 to December 05, 2014. Based on the variance in quantum of trading volumes and the price movement of the scrip during the investigation period, the following patches were identified for investigation, details of which are given in the table below: Table 2 Patch es Price/Volume trend Period Price Movement Avg. Vol. From To Open High Low Close Patch- I Price rise with low trading volume 29/01/2014 30/09/2014 11.39 232.4 11.39 232.40 382 Patch- II Price rise with high trading volume 01/10/2014 05/12/2014 237 356 236 345 38605 Patch- III Price fall with high trading volume 08/12/2014 31/07/2015 345 346.2 109.3 116 15992
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Source: SecMarx — sebi:WTM/AB/EFD-I/DRA-1/28/2018-19. 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.