sebi:WTM/KMA/IVD/221/02/2010
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Facts / Headnote
Show cause notice dated June 8, 2006 issued to Mr. Apurva Shah in the matter of Hitech Drilling Services India Limited disposed without any directions
Provisions invoked
- s. 19
Regulations
- Reg. 11
- Reg. 3
- Reg. 2(e)
- Reg. 2(k)
- Reg. 11(a)
Parties
- Apurva Shah
Holding
The show cause notice dated June 8, 2006 issued to Mr. Apurva Shah alleging communication of unpublished price sensitive information in violation of Regulation 3(ii) was disposed without any directions. The allegation was held not sufficiently proved.
Full text
Page 2 of 10 2001 till March 16, 2001. DSPML also informed SEBI that, it had conducted an internal inquiry in respect of the involvement of its employees and found that Mr. Apurva Shah (hereinafter referred to as the noticee), Assistant Vice President, Mergers & Acquisitions had divulged the information regarding the acquisition of the company, to Mr. Ramamurthy Srinivasan, another employee of the company, but was not a part of the core team. DSPML also stated that, it had terminated the services of the noticee in August 2001 for breach of its policies relating to confidentiality and trading in securities by its employees. The investigation conducted by SEBI observed that on March 13, 2001, Mr. Ramamurthy Srinivasan spoke to one Paresh Thakkar many times and appears to have passed on the unpublished price sensitive information in respect of the said acquisition, to him. Further, it was alleged that Mr. Paresh Thakkar, with the help of his uncle Mr. Bharat Palan and M/s Vinayak Investments, whose proprietor is Mr. Naresh Thakkar, a relative of Mr. Bharat Palan, bought around 2,00,000 shares of the company between March 14 and 16, 2001 based on the above unpublished price sensitive information and made a profit to the tune of about Rs.1,00,00,000/- from the said transactions. It was alleged that Mr. Paresh Thakkar along with Mr. Bharat Palan and M/s Vinayak Investments bought the shares of the company through one Ishita Investments (proprietor, Mr. Ashish Dhirawani), which had
Page 3 of 10 (hereinafter referred to as the said Regulations). In view of the above, SEBI issued a notice dated June 8, 2006 to the noticee advising him to show cause as to why action should not be taken against him under Regulation 11(a) of the said Regulations. Subsequently, as requested by the noticee, copies of the documents relied upon were furnished to him by SEBI. Thereafter, SEBI, vide letters dated September 14, 2006 and April 30, 2007 advised the noticee to submit his reply to the show cause notice, as all the documents were already furnished to him. Pursuant to the same, the noticee was also granted an opportunity of hearing by SEBI on May 29, 2007. Meanwhile, the noticee, vide letter dated May 17, 2007 had filed his reply to the show cause notice. The noticee had also availed the opportunity of hearing and appeared before my predecessor and made
Page 4 of 10 (ii) communicate any unpublished price sensitive information to any person, with or without his request for such information, except as required in the ordinary course of business or under any law; or …………”
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Source: SecMarx — sebi:WTM/KMA/IVD/221/02/2010. 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.