sebi:WTM/KMA/ISD/343/12/2010
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Facts / Headnote
Confirmed ad interim ex-parte directions dated February 5, 2010
Provisions invoked
- s. 19
Regulations
- Reg. 2(e)
- Reg. 3(c)
Holding
The ad interim ex-parte Order dated February 5, 2010 restraining the 16 entities from dealing in the shares of S J Corporation Limited is confirmed and continued pending completion of investigation before March 31, 2011.
Full text
Page 2 of 22 d. Ms. Urvashi Patel, Mr. Bhavesh Patel, Ms. Hetal Patel, Ms. Jagruti Patel, Ms. Manjula Patel, Ms. Pragna Patel and Ms. Rasila Patel, vide separate letters dated March 30,2010 e. Mr. Ramesh D. Patel, Ramesh D. Patel HUF and Shamo Investments Private Limited-vide separate letters dated May 22, 2010 f. Ms. Dharmishtha R. Patel and Ms. Reshma Patel- vide separate letters dated May 24, 2010
Page 3 of 22 3. Mr. Savjibhai D. Patel had submitted that: a. Though Mr. Ramesh Patel, Ms. Dharmishtha Patel and Ms. Reshma Patel were his relatives, he contended that he does not have any business relation with them. Admitted that he is the promoter of Shyam Star Gems Limited. b. During the relevant period (March 18, 2009 to October 1, 2009), he had never traded in the secondary market as he had acquired shares of the Company along with his wife Mrs. Usha S. Patel through share purchase agreement entered with the erstwhile promoters of the Company and acquisition made through open offer as per the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeover) Regulations, 1997 (hereinafter referred to as the Takeover Regulations).. He denied having bought/sold shares of the Company through some entities. c. As regards the price rise in the shares of the Company, it was submitted that he had no role to play in the same as he had not traded in a single share, either directly or indirectly. d. According to him, it has been erroneously concluded that Mr. Ramesh D. Patel, Ms. Dharmishtha Patel and Ms. Reshma Patel belong to the promoters. e. He denied having any role in the price rise in the shares of the Company and in Shyam Star Gems Limited. f. The increase in earning per share (EPS) of the Company as on March 31, 2009 as compared to March 31, 2008 is due to the manufacturing activity and exports, which enabled the Company to reach the export turnover
Page 4 of 22 denied connection with the buy side clients as mentioned in the tables. “Relationship amongst buy clients who traded in the scrip in Period 11”. Though, in respect of Ramesh D. Patel/Ramesh D. Patel HUF, Dharmishtha Patel, while admitting that they are related, had denied any business relationship with them. k. He further denied, connection with entities (as named in Para 31 of the Order) who failed to meet their delivery obligations while trading in the shares of the Company. l. According to him, Shyam Star Gems Limited had bought ten shares in normal course of business and contended that such a miniscule trade could not have impacted the market price in any manner. m. It was submitted, as regards the observation in paragraph 39 of the order that in the current trading mechanism the investor has no means to know the identity of the counterparty involved in the transaction hence it cannot be concluded that Shyam Star Gems Limited had matched the transaction with the related party.
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Source: SecMarx — sebi:WTM/KMA/ISD/343/12/2010. 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.