sebi:WTM/KMA/IVD/400/07/2011
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Facts / Headnote
Interim ex-parte directions issued vide the Order dated February 2, 2011 confirmed against Gemstone Investments Limited, Mr. Narendra Prabodh Ganatra, Mr. Avinash Bothra, Mrs. Dipika Dinesh Kankaria and Mr. Vishal Pare; investigation directed to be concluded not later than December 31, 2011.
Provisions invoked
- s. 19
Parties
- Gemstone Investments Limited
- Mr. Narendra Prabodh Ganatra
- Mr. Avinash Bothra
- Mrs. Dipika Dinesh Kankaria
- Mr. Vishal Pare
Holding
The interim ex-parte directions issued on February 2, 2011 against Gemstone Investments Limited, Mr. Narendra Prabodh Ganatra, Mr. Avinash Bothra, Mrs. Dipika Dinesh Kankaria and Mr. Vishal Pare are confirmed and not revoked or modified.
Full text
Page 2 of 8 Palan (Director, Gemstone Investments Limited) was also present at the time of the hearing. 2. I have considered the submissions made on behalf of the parties mentioned above. The limited issue for consideration in this Order would be to decide whether the ad-interim ex-parte directions issued vide the Order in so far as the aforesaid persons/entities need to be continued, modified or revoked in the light of their submissions and the facts and circumstances of the matter. As stated in the
Page 3 of 8 Pabari-Parikh group and the Walmiki-Shah group indicated the nexus and the close interaction between the two groups and that they had made significant contributions to price rise and creation of volumes, as brought out in the Order. 3. Mr. Avinash Bothra, vide letter dated May 18, 2011 inter alia stated that he is holding a demat account and the same was rarely used as he did not have funds, knowledge and expertise. He stated that he was approached by one Kamlesh Nahar who had introduced him to Mr. Sunil Bhandari and that he was asked to lend his demat account for trading. He further stated that he was also asked as to whether he could provide more demat accounts. It was the submission that Mr. Sunil Bhandari offered `10,000/- per month to use the demat account of Mr. Avinash Bothra. He stated that in order to earn extra income, he had offered his demat account to Mr. Sunil Bhandari. It was the contention of Mr. Avinash Bothra that he was kept under the impression that only legitimate dealings were given effect. Mr. Avinash Bothra further submitted that that he had also given the demat account of his wife (Mrs. Dipika Kankaria Bothra) and his colleague, Mr, Vishal Pare. In the facts and circumstances, Mr. Avinash Bothra requested SEBI to allow him to participate in the securities market and trade in the Scrips. Mrs. Dipika Kankaria Bothra and Mr. Vishal Pare made similar
Page 4 of 8 sold 18,05,834 shares during the examination period. Further, Mr. Vishal Pare had transferred 2,00,000 shares to Mr. Samir Shah and was found to be one of the top traders in Well Pack Papers & Containers Limited with a buy of 4661616 shares (1.53% of the total traded volume) and sell of 42,96,456 shares (1.41% of the total traded volume) during the examination period. The Order had, in detail, provided the pattern of trading and dealings in the select scrips, which indicated that the Pabari-Parikh group was allegedly responsible for creating substantial volumes, which appear to be artificial in nature, executing synchronized and structured trades, executing wash trades involving substantial quantities of trades and receiving shares off-market for the purpose of meeting pay-in obligations etc. in the shares of Spectacle Industries Limited (now known as Spectacle Infotek Limited), Goldstone Technologies Limited, Gemstone Investments Limited, LGS Global Limited. Further, the Pabari-Parikh group has also been active as a dominant partner while dealing in the shares of Gemstone Investments Limited and a support to the Walmiki-Shah group in the shares of Well Pack Papers & Containers Limited. The dealings of Mr. Avinash Bothra, Mrs. Dipika Dinesh Kankaria and Mr. Vishal Pare are mentioned in the order. It was observed that they had executed number of transactions with other persons in the group. It is now stated by them that they had given their demat accounts for the u
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Source: SecMarx — sebi:WTM/KMA/IVD/400/07/2011. 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.