sebi:WTM/GM/EFD/36/2019-20

SEBI · SEBI · 2009-02-27 · G. Mahalingam, 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

Noticee restrained from accessing the securities market and prohibited from buying, selling or otherwise dealing in securities for a period of two years, to run concurrently with prior debarment in PSTL matter

Provisions invoked

• s. 11B
• s. 15
• s. 19

Regulations

• Reg. 7(1)
• Reg. 4(a)
• Reg. 3
• Reg. 13(1)
• Reg. 3(a)

Parties

• Nirmal Kotecha

Holding

The Noticee, Nirmal Kotecha, contravened Regulations 3(a), (b), (c), (d), 4(1) and 4(2)(a) & (g) of the PFUTP Regulations by intentional self-trades and violated Regulation 7(1) of SAST Regulations and Regulation 13(1) of PIT Regulations by non-disclosure, and was restrained from the securities market for two years.

Full text

______________________________________________________________________ Order in the matter of UAL Page 2 of 17 The SCN alleged that Nirmal Kotecha was part of a group of entities, referred to as ‘Group 1 entities’ in the SCN, comprising of 12 entities viz., the Noticee, Manilal Kotecha, Amol Anand Kokane, Tushar Gopal Karmokar, Super Velours Private Ltd, Chetan Shashikant Shah, Mukesh Giridhar Konde, Hetal Rajesh Patel, DKG Securities Pvt. Ltd., Nikhil Securities Ltd, Pritesh A Patel and Pandoo P Naig. The connection amongst the entities of Group 1 is given below:

______________________________________________________________________ Order in the matter of UAL Page 3 of 17 1.4. The connections brought out in the table above are primarily pursuant to the investigation carried out by SEBI with respect to the trading of the Noticee in the scrip of Pyramid Saimira Theatre Ltd. (‘PSTL’), and may therefore include some entities who have not traded in the scrip of UAL. 1.5. It was observed in the investigation that during the investigation period, the entities of Group 1 had altogether purchased 81,13,427 shares of UAL accounting for 15.20% of the market volume and sold 80,73,869 shares accounting for 15.13% of the market volume. The details of the trading carried out by the Group 1 entities is given below:  An off market transfer of 562 shares is observed from Shri Chetan Shah to Super Velours (Director:Shri Tushar Karmokar). 7 Tushar Gopal Karmokar

______________________________________________________________________ Order in the matter of UAL Page 4 of 17 sl. no. client name Gross Buy Gross Buy % to total Buy vol. Gross Sell Gross Sell % to total Sell vol. Net Volume 1 DKG Securities Pvt Ltd 17,53,921 3.29% 11,98,133 2.25% 5,55,788 2 Pritesh A Patel 4,71,500 0.88% 1,48,042 0.28% 3,23,458 3 Chetan S Shah 15,94,164 2.99% 17,20,499 3.22% -1,26,335 4 Mukesh G Konde 12,78,129 2.40% 12,71,649 2.38% 6,480 5 Nirmal Kotecha 8,53,123 1.60% 7,54,061 1.41% 99,062 6 Tushar Gopal Karmokar 6,53,688 1.22% 6,77,966 1.27% -24,278 7 Hetal Rajesh Patel 6,50,931 1.22% 8,78,486 1.65% -2,27,555 8 Super Velours Pvt. Ltd 4,74,966 0.89% 10,82,028 2.03% -6,07,062 9 Nikhil Securities Limited 2,59,000 0.49% 2,19,000 0.41% 40,000 10 Amol Anand Kokane 86,372 0.16% 86,372 0.16% 0 11 Manilal Kotecha 37,633 0.07% 37,633 0.07% 0 Total Group 1 81,13,427 15.20% 80,73,869 15.13% 39,558

Source: SecMarx — sebi:WTM/GM/EFD/36/2019-20. 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.