sebi:WTM/AB/IVD/ID-3/06/2021-22
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Facts / Headnote
Noticees No.1,2,3,4,5 and 6 restrained from accessing the securities market and prohibited from buying, selling or otherwise dealing in securities for 02 years; Noticees No.2,3,4 and 6 directed to disgorge wrongful gains as per Table 25 Column G with 12% p.a. interest from June 29, 2017 to Investor Protection and Education Fund
Provisions invoked
- s. 11
- s. 19
- s. 11(1)
- s. 11B
- s. 12A
- s. 12
- s. 15H
- s. 15J
- s. 15F
- s. 24
- s. 11(5)
- s. 11B(2)
- s. 11B(1)
Regulations
- Reg. 4
- Reg. 3
- Reg. 4(1)
- Reg. 4(2)
Parties
- Gangwal Sunil Kumar (Noticee No.1)
- Vihit Investment (Noticee No.2)
- Mohd Faisal (Noticee No.3)
- AKG Securities And Consultancy Limited (Noticee No.4)
- Paramount Incorporation (Noticee No.5)
- Minesh Jormalbhai Mehta (Noticee No.6)
Holding
All six Noticees violated Section 12A(a),(b),(c) read with Regulations 3 and 4 of PFUTP Regulations by entering reversal/synchronized and self-trades to manipulate Biocon Ltd. price and settlement price on June 29, 2017; all six debarred for 2 years and Noticees 2,3,4,6 ordered to disgorge futures gains with interest.
Full text
Final Order in the matter of Biocon Limited Page 1 of 86 WTM/AB/IVD/ID-3/06/2021-22 SECURITIES AND EXCHANGE BOARD OF INDIA FINAL ORDER UNDER SECTIONS 11(1), 11(4), 11B(1) AND 11B(2) OF THE SECURITIES AND EXCHANGE BOARD OF INDIA ACT, 1992 READ WITH SECURITIES AND EXCHANGE BOARD OF INDIA (PROCEDURE FOR HOLDING INQUIRY AND IMPOSING PENALTIES) RULES, 1995
Final Order in the matter of Biocon Limited Page 2 of 86 Market) Regulations, 2003 (hereinafter referred to as “PFUTP Regulations”), as mentioned therein.
Final Order in the matter of Biocon Limited Page 3 of 86 d) It was observed from UCC details from BSE, off market data from depositories, common directorship from MCA database and bank statements of Noticees obtained from Banks that Vipul Trivedi (partner of Paramount Incorporation) has one proprietorship firm named Sand Enterprises. It was further observed that Sand enterprises had financial transaction with Minesh Jormalbhai Mehta. Vide email dated November 13, 2019 Gangwal Sunil Kumar stated that Minesh Jormalbhai Mehta is casually known to him for around 9 months. Further, he had availed a friendly loan from Minesh Jormalbhai Mehta and same was repaid. Further, Gangwal Sunil Kumar had stated that partners of Vihit investment are known to him formally and a banking transaction between Ganjwal and Vihit investment of Rs. 2.34 crore was carried out during 22-07- 2019 to 15-10-2019. Both the aforesaid financial transactions have been confirmed by Minesh Jormalbhai Mehta vide emails dated September 16, 2019 and November 12, 2019 and Vihit Investment vide emails dated September 14, 2019 and November 13, 2019. The list of Noticees and their connections are given below: Table 2: Connections amongst Noticees Noticee Name Pan number Basis of Connection Gangwal Sunil Kumar (Noticee No. 1) ABBPG4026C Noticee number 1 is connected to Noticee number 2 & 6 by way of fund movement. Further, they have confirmed vide email that they know each other. Vipul Trivedi (partner of Paramount Inco
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Source: SecMarx — sebi:WTM/AB/IVD/ID-3/06/2021-22. 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.