sebi:WTM/AS/IVD/ID1/29740/2023-24

SEBI · SEBI · 2021-03-31 · Amarjeet Singh, 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 revoked; impounded amounts ordered to be released with interest

Provisions invoked

• s. 19

Regulations

• Reg. 2(1)(d)
• Reg. 2(1)(g)
• Reg. 2(1)(n)

Parties

• Udit Todi
• Avani Todi
• Sanjeev Bubna
• Indi Stock Private Limited
• Akshay Kapoor
• Arun Kapoor
• Dinero Finance & Investments Private Limited
• Mohd. Mujtaba Ali Khan
• Shubham Somani
• Anju Somani
• SS Corporate Securities Limited
• Sunder Somani
• Suyash Somani
• Evermore Stock Brokers Limited

Holding

The directions issued vide the interim order dated January 24, 2022, as confirmed with modifications vide order dated May 27, 2022, against the Entities are revoked with immediate effect and the amount impounded pursuant thereto shall be released along with interest, if any.

Full text

___________________________________________________________________________ Page 2 of 8 Order in the matter of Lux Industries Limited Sensitive Information (hereinafter referred to as “UPSI”) in contravention of the provisions of the Securities and Exchange Board of India Act, 1992 (hereinafter referred to as “SEBI Act”) read with the Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015 (hereinafter referred to as “PIT Regulations”).

___________________________________________________________________________ Page 3 of 8 Order in the matter of Lux Industries Limited was also connected to SS Corporate Securities Limited (hereinafter referred to as “SSCSL/Entity no 11”) and Evermore Stock Brokers Limited (hereinafter referred to as “Evermore/Entity no. 14”); e) During the UPSI period, Sanjeev, Arun and Shubham dealt in the scrip of Lux by executing/ placing orders in the trading accounts of ISPL, Dinero and SSCSL respectively. Further, Shubham also executed orders in the trading account of his mother, i.e., Anju. It was also noted that Akshay, Sunder and Suyash had dealt in the scrip of Lux through their own trading account; f) The preliminary examination revealed that Udit, being an insider and in possession of UPSI, communicated the UPSI to Sanjeev and Mujtaba and Mujtaba, in turn, communicated the UPSI to Akshay. Further, Akshay communicated the UPSI to his father, Arun who dealt in the scrip of Lux through trading account of Dinero. Similarly, on receipt of UPSI from Akshay, Shubham dealt in the scrip of Lux through trading account of Anju and also through the trading account of SSCSL. Shubham also communicated the UPSI to Sunder who further communicated the same to his son, Suyash. Similarly, Evermore (where Shubham was a shareholder, a past director and also director for business development at the time of preliminary examination) executed trades in the scrip of Lux which, prima facie, seemed to be bas

___________________________________________________________________________ Page 4 of 8 Order in the matter of Lux Industries Limited a) All the Entities, viz; the Entity nos. 1 to 14 are restrained from buying, selling or dealing in securities, either directly or indirectly, in any manner whatsoever until further orders. b) If the Entities have any open position in any exchange traded derivative contracts, as on the date of the order, they can close out / square off such open positions within 3 months from the date of order or at the expiry of such contracts, whichever is earlier. The Entities are permitted to settle the pay-in and pay-out obligations in respect of transactions, if any, which have taken place before the close of trading on the date of this order. c) The bank accounts of the Entities are hereby impounded to the extent of their respective liability as indicated against them as under: i. Bank accounts of the Entity nos. 3 and 4 shall be jointly and severally liable for an amount of ₹1,28,68,738. ii. Bank accounts of the Entity nos. 5 and 10, shall be jointly and severally liable for an amount of ₹1,49,925. iii. Bank accounts of the Entity nos. 6 and 7shall be jointly and severally liable for an amount of ₹1,91,038. iv. Bank accounts of the Entity nos. 9 and 10, shall be jointly and severally liable for an amount of ₹21,86,168. v. Bank accounts of the Entity nos. 9 and 11, shall be jointly and severally liable for an amount of ₹20,50,796. vi. Bank accounts of th

Source: SecMarx — sebi:WTM/AS/IVD/ID1/29740/2023-24. 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.