sebi:WTM/GM/EFD/05/APRIL/2017

SEBI · SEBI · 2017-01-13 · G. Mahalingam, Whole Time Member

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Facts / Headnote

Charges of PFUTP violations upheld against 49 noticees; Group 2 noticees restrained from dealing in securities for 3 years; separate orders to follow for SAST violations and for three adjourned entities.

Provisions invoked

• s. 11B
• s. 11
• s. 19

Regulations

• Reg. 11
• Reg. 199
• Reg. 200
• Reg. 3(a)
• Reg. 10
• Reg. 3(a)(b)(c)
• Reg. 11(1)

Holding

The WTM of SEBI held that Group 1 entities (Exelon Infrastructure Ltd., its promoter and 6 directors) manipulated the scrip through misleading corporate announcements, and that noticees Jayesh H. Mehta, Shivcharan S. Kashyap and Divyesh H. Surana indulged in price manipulation by establishing new high prices and positive LTP contributions, in violation of Regulations 3(a)-(d), 4(1) and 4(2)(a) of the PFUTP Regulations, 2003. The remaining noticees were found connected to the fraudulent scheme, and Group 2 noticees were restrained from dealing in securities for 3 years.

Full text

Page 2 of 41 33. MR. AMRIT L. GANDHI [PAN: AACPG5265H]. 34. MS. SEEMA GANDHI [PAN: AAEPG0960B] 35. MR. NARENDRA OMPRAKASH DOGRA [PAN: AJMPD8729N]. 36. MR. JITENDRA L. GANDHI [PAN: AACPG6473H]. 37. MR. KANTILAL LAKSHMICHAND [PAN: ADSPK7577K]. 38. MS. SHIVANGI JAGMOHAN SINGH [PAN: AOSPS5911E]. 39. MR. DIVYESH HARISH SURANA [PAN: DALPS0578H]. 40. MR. HUSSAIN MOHAMMED SHAIKH [PAN: BSSPS2832P]. 41. MS. PARUL ANUPAM KHANNA [PAN: BCUPK8420R]. 42. MR. JIGNA MANISH SHAH [PAN: ANQPS6789P]. 43. MRS. BHAVNABEN NIMESHBHAI MISTRY [PAN: ALIPM5347B]. 44. MR. NISHITA DANISH MERCHANT [PAN: AMHPM8133B]. 45. MR. VENKATA SUBBARAO YARRA [PAN: AAPPY4270P]. 46. MR. SHAIK AMEER BASHA [PAN: AEZPB3408A]. 47. MS. PARVATHANENI MOUNISHA [PAN: BAOPP1399G]. 48. MR. PIYUSH NARESH KOTHARI [PAN: AEOPK1882L]. 49. MS. ANJALI TUKARAM SOGAM [PAN: CGNPS1443N].

Page 3 of 41 3 During the same period, BSE Sensex dipped from 19,696 as on December 8, 2010 to 16,739 as on January 20, 2012. The trading in the scrip was on trade-to-trade basis during the period 31.12.2010 to 22.02.2011 and from 18.3.2011 to 20.1.2012 with applicable circuit filters of 5%. The investigation brought out a manipulative scheme involving 52 entities (49 noticees named above and 3 others namely - Kanta Anantrai Desai, Sneha Pankaj Desai and Dimple Pankaj Desai, who have sought time for defending their case before me). Having considered the request for adjournment sought by the said three entities, I wish to limit the scope of this order to the above named 49 entities. I find that besides violations under the PFUTP Regulations, the investigation has also revealed violations of SEBI SAST Regulations. For the sake of convenience and in keeping with the Hon’ble SAT’s direction, vide order dated January 13, 2017, to dispose of the matter in a time bound manner, I am dealing with the violation of PFUTP committed by 49 entities named above in this order. The violations pertaining to SAST, inter alia involving few of the entities named above along with one another shall be considered separately.

Page 4 of 41 January 13, 2017, Hon’ble SAT disposed of the appeal recording the statement of SEBI counsel that SEBI would issue SCN to the appellants, give opportunity of hearing and pass appropriate final orders within a period of three months. Accordingly, SCN dated January 19, 2017 was sought to be issued on 52 entities which were involved in the whole investigation as the matter could not be taken up for consideration limiting the issues to the appellants before Hon’ble SAT.

Source: SecMarx — sebi:WTM/GM/EFD/05/APRIL/2017. 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.