sebi:WTM/AB/ISD/ISD-SEC-4/28901/2023-24

SEBI · SEBI · 2023-05-04 · Ashwani Bhatia, Whole Time Member

This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.

Facts / Headnote

Directions in the Interim Order dated January 25, 2023 modified to the extent that the bank accounts of Santosh Singh Karki shall stand defreezed; all other directions of the Interim Order continue to apply.

Provisions invoked

• s. 19

Holding

SEBI modified the Interim Order dated January 25, 2023 to defreeze the bank account of Santosh Singh Karki (Applicant 2), while all other directions of the Interim Order continue to apply. The merits arguments of Noticee 1 (Applicant 1) were deferred pending hearings with all Noticees.

Full text

___________________________________________________________________________________ Order in the matter of Superior Finlease Ltd. P a g e 2 | 8 share price of SFL (through LTP contributions) (as depicted under Column B of the Table no. 26) and an amount of unlawful gains of Rs. 1,75,49,588.55 (as depicted under Column B of the Table no. 27) generated by way of dumping the shares of SFL on the recommendation day, i.e., September 14, 2021, are hereby being impounded , jointly and severally, from the respective Noticees as mentioned in the column C of Table no. 26 and 27; d) Further, the Noticees as named in the column C of the Table nos. 26 and 27 are directed to open an escrow account (s) with a Nationalize d/Scheduled Commercial bank jointly and severally, and deposit within 15 days from the date of service of this order, the impounded amount as directed in para (c) above which has been prima facie determined to be the proceeds of wrongful profits/gains gene rated from the unfair trade practices activities as noted above in this order. The said Escrow account/s shall be interest - bearing escrow account and shall create a lien in favour of SEBI. Further, the monies kept therein shall not be released without permission from SEBI. e) The banks where the Noticees are holding bank accounts, jointly or severally, are directed to ensure that till further directions, except for compliance of directions as stated above, no debits shall be made in the bank accounts of the Noticees wit

___________________________________________________________________________________ Order in the matter of Superior Finlease Ltd. P a g e 3 | 8

___________________________________________________________________________________ Order in the matter of Superior Finlease Ltd. P a g e 4 | 8 d) The allegation that there was a concerted effort on the part of the Noticees to inflate the price of the scrip during Patch 1 and thereafter, had dumped the shares on unsuspecting investors during Patch II, is not borne out by the facts on record as it can be noted that Noticees 18 and 19 had in fact bought shares during Patch II. e) He was not aware of the recommendations given through Telegram Channels. f) If the intention of the Noticees were to dump the shares at a high price then they would have sold the shares on June 28, 2021 when the price was higher. g) When he became aware about the recommendation being made on the Telegram channel on September 14, 2021, he had immediately lodged a police compliant regarding the same. h) The Noticee also refuted the allegation in the preliminary findings in the

Source: SecMarx — sebi:WTM/AB/ISD/ISD-SEC-4/28901/2023-24. 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.