sebi:WTM/KMA/IVD/381/05/2011
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Facts / Headnote
Mr. Ramesh Chandra K. Jain, Mrs. Bela H. Kayashtha, Mr. Dinesh K. Patel and Mr. Jayantilal Patel restrained from accessing the securities market and prohibited from buying, selling or otherwise dealing in securities for six months; Mr. Hari Ballabh Agarwal warned and directed to adhere to rules/regulations.
Provisions invoked
- s. 15A
- s. 19
- s. 11C
Regulations
- Reg. 3
- Reg. 4(1)
- Reg. 3(a)
- Reg. 4(2)(b)
Parties
- Mr. Ramesh Chandra K. Jain
- Mrs. Bela H. Kayashtha
- Mr. Dinesh K. Patel
- Mr. Jayantilal Patel
- Mr. Hari Ballabh Agarwal
Holding
Mrs. Bela H. Kayashtha, Mr. Dinesh K. Patel, Mr. Jayantilal Patel and Mr. Ramesh Chandra K. Jain were held guilty of contravening Regulations 3 and 4(1) and 4(2)(a) and (e), with Mrs. Kayashtha and Mr. Jain additionally guilty under 4(2)(b) and (g), and restrained for six months; Mr. Hari Ballabh Agarwal was held guilty of indirectly dealing fraudulently under Regulation 3(a) and 4(1) and was warned.
Full text
Page 2 of 20 Company and one Atul Shah to manipulate the shares of the Company. The notice had alleged, on the basis of the findings detailed therein, that Mr. Viral V. Mewada (said to be an employee of Mr. Atul Shah), Mr. Dinesh K. Patel, Mr. Jayantilal Patel, Mrs. Bela H. Kayashtha, Mr. Ramesh Chandra K. Jain and Mr. Hari Ballabh Agarwal had acted hand in glove with Mr. Atul Shah and Mr. Anil Patel and aided them to materialize their game plan to manipulate the share price of the Company and then dumped the shares to unsuspecting investors. It was also alleged that there were circular and synchronized/fictitious trades in the scrip which created artificial market. It was further alleged that the orders were successively placed at increasing rates and in the process, the share price of the Company was raised. The persons were also charged for not having complied with the summons issued to them under Section 11C (3) & (5) of the Securities and Exchange Board of India Act, 1992 (hereinafter referred to as the SEBI Act). The alleged acts of the persons have been mentioned in detail in the notice. The notice had charged the persons of contravening Regulations 3, 4(1) and 4(2)(a),(b),(e)&(g) of the Securities and Exchange Board of India (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 2003 (hereinafter referred to as the PFUTP Regulations). The notice called upon the persons to show cause as to why suitable directions including dir
Page 3 of 20 Mrs. Bela H. Kayashtha. As the notices could not be delivered on Mr. Jayantilal Patel, a public notice was published in the newspapers on March 5, 2010 informing that if he failed to reply to the notice, the matter would be decided ex- parte. Despite the same, Mr. Jayantilal Patel failed to respond. In view of the above, I am constrained to decide the case on merits on the basis of the
Page 4 of 20 persons. Mr. Anil Patel had stated that the shares so transferred were that of himself and his family members. As SEBI has initiated separate proceedings against Mr. Anil Patel and Mr. Atul Shah in the matter, I would refrain from considering their role, in this Order.
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Source: SecMarx — sebi:WTM/KMA/IVD/381/05/2011. 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.