sebi:WTM/ASB/IVD/ID1/29987/2023-24
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Facts / Headnote
Noticee Abhijit Pawar found to have violated Regulation 3(1) and Regulation 4(1) of PIT Regulations, 2015; directions issued under Sections 11(1), 11(4), 11(4A), 11B(1), 11B(2) read with Section 19 of SEBI Act, 1992
Provisions invoked
- s. 19
- s. 12A
- s. 15G
- s. 15J
Regulations
- Reg. 4(1)
- Reg. 2(1)(d)
- Reg. 2(1)(g)
- Reg. 3(1)
- Reg. 2(1)(n)
Parties
- Abhijit Pawar
Holding
Shri Abhijit Pawar communicated UPSI regarding Poonawalla Group's acquisition of controlling stake in Magma Fincorp Ltd. to Shri Rakesh Bhojgadhiya and funded his trades, and indirectly traded through him, thereby violating Regulation 3(1) and Regulation 4(1) of the PIT Regulations, 2015 read with Section 12A(d) and (e) of the SEBI Act, 1992.
Full text
Order in the matter of Magma Fincorp Ltd. (now known as Poonawalla Fincorp Ltd.) Page 2 of 27 of ₹3,456 crores in Magma. The information regarding acquisition of controlling stake in Magma by Poonawalla Group was an ‘Unpublished Price Sensitive Information’ (“UPSI”) in terms of Regulation 2(1)(n) of the PIT Regulations, 2015, which had originated on January 11, 2021 and came into the public domain on February 10, 2021 (i.e. UPSI Period was from January 11, 2021 to February 10, 2021).
Order in the matter of Magma Fincorp Ltd. (now known as Poonawalla Fincorp Ltd.) Page 3 of 27 5. There were several phone calls between Shri Abhay Bhutada on the one side and Shri Saumil Shah, Rakesh Bhojgadhiya and Shri Abhijit Pawar on the other side, during the UPSI period. Further, Shri Abhay Bhutada and Shri Rakesh Bhojgadhiya had known each other for many years and both of them shared certain commercial relationships over the years. Similarly, there were financial transactions between Shri Abhay Bhutada and Shri Abhijit Pawar.
Order in the matter of Magma Fincorp Ltd. (now known as Poonawalla Fincorp Ltd.) Page 4 of 27 (c) Shri Rakesh Bhojgadhiya, after receiving the UPSI from Shri Abhay Bhutada, passed on the same to Shri Amit Agrawal (brother-in-law of Shri Rakesh Bhojgadhiya) and Shri Murlidhar Bajranglal Agrawal (father-in-law of Shri Rakesh Bhojgadhiya). The same was evident from the fact that there were several telephone calls between Shri Rakesh Bhojgadhiya and Shri Amit Agrawal during the UPSI period. Shri Rakesh Bhojgadhya also provided funds to Shri Amit Agrawal, which was used by Shri Amit Agrawal for trading in the scrip of Magma for himself as well as his father, Shri Murlidhar Agrawal, on the basis of the UPSI and making illegal gains.
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Source: SecMarx — sebi:WTM/ASB/IVD/ID1/29987/2023-24. 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.