sebi:WTM/KMA/IVD/52/03/2009
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Facts / Headnote
Restrained Mr. Urvish Ramesh Vora from accessing the securities market for a period of two years and prohibited him from buying, selling or otherwise dealing or associating with the securities market in any manner whatsoever for a period of two years.
Provisions invoked
- s. 11B
- s. 19
Regulations
- Reg. 11
- Reg. 3
- Reg. 6
- Reg. 5(1)(a)
- Reg. 5
Parties
- Mr. Urvish Ramesh Vora
Holding
Mr. Urvish Ramesh Vora was held to have violated Regulation 3, 4(b) and 6(a) of the PFUTP Regulations, 1995 by trading on behalf of a debarred person (Mr. Rajesh Kumar Vittalbhai Patel) and acting as a conduit/front entity for offloading shares, and was restrained from accessing the securities market for two years.
Full text
Page 2 of 12 observed that after the issuance of the advertisements, there was a marked increase in the trading in the shares of the company at the Bombay Stock Exchange Limited (hereinafter referred to as BSE). The shares of the company were also listed at the Ahmedabad Stock Exchange Limited (hereinafter referred to as ASE). It was prima facie observed that such advertisements had been issued in the absence of any legal compulsion on the part of the company. It was felt that such advertisements were published by the company/its directors prima facie to induce investors to trade in the shares of the company. In order to ascertain the veracity of such advertisements and to find out the possible violations, if any, of the provisions of the Securities and Exchange Board of India Act, 1992 (hereinafter referred to as SEBI Act) and the Rules and Regulations framed thereunder by the company/any person dealing in the shares of the company, SEBI conducted an investigation into the buying, selling and dealing in the shares of the company for the period between May 01, 2002 and September 30, 2002.
Page 3 of 12 increased but the prices fell. Investigations further revealed that entities/individuals related to the company including Mr. Rajesh Kumar Vittalbhai Patel, Ms. Kirti R Patel etc. had transferred shares of the company off market to various persons including Mr. Urvish Ramesh Vora. It was also noticed that some of the transferees had offloaded substantial number of shares in the market pursuant to the advertisements, thereby making unfair gain. In view of the above, inter alia the company and its directors Mr. Hitesh R. Bhatt, Mr. Kalpesh R. Sheth, Mr. Pritesh Shah and Rinku J Shah were alleged to have contravened the provisions of clauses (a) & (b) of Regulation 5 (1) and Regulation 6 (a) of the Securities and Exchange Board of India (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 1995 (hereinafter referred to as PFUTP Regulations). One of the directors, Mr. Pritesh B Shah along with other persons including Mr. Urvish Ramesh Vora (sold through the stock broker, Parklight Investment Private Limited) were found to have off-loaded the shares in the market on behalf of entities/individuals related to the company including Mr. Rajesh Kumar Vittalbhai Patel, Ms. Kirtiben Patel (wife of Mr. Rajesh Kumar Vittalbhai Patel), Mr. Paresh Patel (son of Mr. Rajesh Kumar Vittalbhai Patel) and Ms Hema Patel (daughter in law of Mr. Rajesh Kumar Vittalbhai Patel) and the same were prima facie in violation of the provisions of Regu
Page 4 of 12 SEBI directed him not to deal in securities in any particular manner for a period of one year with effect from March 01, 2002.
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Source: SecMarx — sebi:WTM/KMA/IVD/52/03/2009. 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.