sebi:WTM/KMA/IVD/271/06/2010

SEBI · SEBI · 2009-06-15 · Dr. K. M. Abraham, 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

Restrained Dr. Mahendra C. Shah and Mrs. Hasu M. Shah from accessing the securities market and from buying, selling or dealing in securities, directly or indirectly, till further directions; declared Dr. Mahendra C. Shah not a fit and proper person and barred from holding any managerial/key position in any listed company or intermediary till further orders; referred matter regarding Mr. Prakash K. Shah to Bar Council of Maharashtra and Goa and Bar Council of India.

Provisions invoked

• s. 19
• s. 12A
• s. 17

Regulations

• Reg. 11
• Reg. 4(2)(f)
• Reg. 3(a)
• Reg. 4(2)(d)

Parties

• Karuna Cables Limited (now Globus Corporation Limited)
• Dr. Mahendra C. Shah
• Mrs. Hasu M. Shah
• Ceetee Trading
• Mr. Sanjay B. Shah
• Mr. Prakash K. Shah

Holding

SEBI restrained Dr. Mahendra C. Shah and Mrs. Hasu M. Shah from accessing the securities market and dealing in securities till further directions, and declared Dr. Mahendra C. Shah not a fit and proper person barred from any managerial position in listed companies or intermediaries, on the prima facie finding that they forged authority letters, used Ceetee Trading and Sanjay B. Shah's name as fronts for market manipulation, and that advocate Prakash K. Shah aided and abetted the forgery.

Full text

Page - 2 - of 18 referred to as the PFUTP Regulations). It was further alleged that the Company and Dr. Mahendra C. Shah had violated Regulation 4(2)(f) and (r) of the PFUTP Regulations and Ceetee Trading and Mr. Sanjay B. Shah also violated Regulation 4(2)(d) and (e) of the PFUTP Regulations. Pursuant to the receipt of replies from the parties, SEBI afforded opportunities of personal hearing to them. On March 17, 2009, the said parties were represented by Mr. Prakash K. Shah, advocate who made submissions. Dr. Mahendra C.Shah was also present during the hearing. Thereafter, SEBI, vide order dated June 15, 2009, restrained the Company, Dr. Mahendra C. Shah, Ceetee Trading and Mr. Sanjay B. Shah from accessing the securities market and further prohibited them from buying, selling or dealing in the securities market, directly or indirectly, for a period of six months, for the reasons stated therein.

Page - 3 - of 18 appear before SEBI in the case of the Company. Thereafter, as directed by the Appellate Authority, copies of authority letters authorizing Mr. Prakash K. Shah, Advocate to appear before SEBI on behalf Mr. Sanjay B. Shah, was provided by SEBI to Mr. Sanjay B. Shah, vide letter January 13, 2010.

Page - 4 - of 18 c. That accordingly Mr. Sanjay B. Shah had sent an authority letter to Dr. Mahendra C. Shah in favour of the same Mr. Prakash K. Shah to act, appear and plead on his behalf; d. That Dr. Mahendra C. Shah had handed over the said letter of authority to Mr. Prakash K. Shah and requested him to act, appear and plead for the said Mr. Sanjay B. Shah and his company Ceetee Trading; e. That Dr. Mahendra C. Shah was present in the proceedings before SEBI when Mr. Prakash K. Shah appeared and argued for him and the Company and also for Mr. Sanjay B. Shah and Ceetee Trading; f. That on account of certain differences arising later in respect of certain transactions of and relating to Mr. Sanjay B. Shah/or his company, he made a false complaint to SEBI authorities with a view to bring pressure on Dr. Mahendra C. Shah; g. That the advocate Mr. Prakash K. Shah has not done anything wrong, or, to the prejudice of Mr. Sanjay B. Shah and /or Ceetee Trading, when he has been authorized by Mr. Sanjay B. Shah to act, appear and plead on his behalf and Ceetee Trading before SEBI.

Source: SecMarx — sebi:WTM/KMA/IVD/271/06/2010. 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.