sebi:WTM/GM/EFD/27/2019-20
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Facts / Headnote
Noticees Nos. 1 to 9 held to have violated PFUTP Regulations and Noticee Acquirers Nos. 1-5 held to have triggered SAST thresholds; Noticees restrained from accessing/dealing in securities market for 5 years and restrained from associating with any listed company or company proposing to list, or any registered intermediary as director/key management personnel/partner, with immediate effect.
Provisions invoked
- s. 11B
- s. 11(4)
- s. 19
- s. 12A
- s. 11
Regulations
- Reg. 4
- Reg. 3
- Reg. 44
- Reg. 4(a)
- Reg. 199
- Reg. 10
- Reg. 13(1)
- Reg. 11(1)
- Reg. 3(a)
- Reg. 7(1)
- Reg. 4(2)(a)
- Reg. 32
- Reg. 8
- Reg. 2(e)(1)
- Reg. 2(e)(2)
Parties
- Sanjay Jethalal Soni
- Krupa Sanjay Soni
- J M Soni Consultancy
- Dhiren Dharamdas Agarwal
- Shweta Dhiren Agarwal
- Krunal Gopaldas Rana
- Amul Gagabhai Desai
- Mahesh Somabhai Desai
- Arif Gulammustufa Shaikh
Holding
Noticee Nos. 1 to 9 created artificial volumes and manipulated price of PIL scrip through matched trades, self-trades, LTP/NHP/first-trade contributions in violation of Section 12A of SEBI Act and PFUTP Regulations, and Noticee Nos. 1-5 acquired over 15% (and over 5% thereafter) triggering open-offer liability; SEBI imposed 5-year market access ban and association ban under Sections 11, 11(4) and 11B.
Full text
Page 2 of 42 Connection between the Noticees 2. The Noticees to this Order were, after perusal of their respective KYC documents. found to be connected to each other, the basis for this connection elaborated as follows: Table 1 Sl. No. Name of entity Basis of connection
Page 3 of 42 Sl. No. Name of entity Basis of connection 8. Mahesh Somabhai Desai (Noticee No.8) (1) Mahesh Somabhai Desai and M/s. JM Soni Consultancy share common contact no. 9727548290. (2) On perusal of trades of Mahesh Somabhai Desai with Prabhudas Lilladher P. Ltd., it is observed that orders were placed through Sanjay Jethalal Soni.
Page 4 of 42 3.1.2 The investigation by SEBI had identified 63 entities as forming part of the larger Soni group which were connected to each other. Out of these 63 entities, the following 15 entities (which is referred to as the "sub-group" in the Table below and which includes all the Noticees) had traded among themselves for more than 10,000 shares during Patch I, executed matched trades, thereby creating artificial volumes in the scrip: Table 3 Client Name Buy Qty matched with entire Soni group Buy Qty matched with sub group Sell Qty matched with entire Soni group Sell Qty matched with sub group Krunal Gopaldas Rana 4,68,700 2,51,200 4,56,400 2,18,000 Amul Gagabhai Desai 4,11,200 2,28,650 3,81,850 2,07,800 Dhirenkumar Dharamdas Agarwal 2,91,550 1,03,750 3,12,400 1,50,750 Krupa Sanjay Soni 2,54,450 1,33,550 3,57,050 2,53,650 Sanjay Jethalal Soni 2,46,950 1,41,050 2,31,150 1,47,850 Mahesh Somabhai Desai 2,12,500 95,800 2,53,850 1,40,900 Shweta Dhiren Agrawal 2,00,750 77,700 1,70,100 44,350 Miteshgiri Chandangiri Goswami 1,36,350 52,650 1,00,750 11,900 Arif Gulammustufa Shaikh 1,22,950 78,350 95,550 33,850 Janakray Vithaldas Soni 93,100 42,350 81,300 13,950 Amitkumar Rameshchandra Rana 87,500 10,350 79,400 26,050 Vipul Virendrakumar Patel 75,350 49,700 49,350 13,650 J M Soni Consultancy 70,550 39,900 62,950 18,800 Shantiben Gangaram Desai 47,850 0 80,400 23,650 Dhaval Satishkumar Agrawal 47,050 12,150 48,300 12,000 Total 27,66,800 13,17,150 27,60,800 13,17,150
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Source: SecMarx — sebi:WTM/GM/EFD/27/2019-20. 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.