sebi:WTM/KMA/IVD/64/04/2009
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Facts / Headnote
Show cause notice dated February 03, 2006 disposed of; noticees found guilty of violating Regulation 4(a) of PFUTP Regulations, 1995 and warned
Provisions invoked
- s. 19
Regulations
- Reg. 11
- Reg. 4(a)
Parties
- M/s. Ishita Investments
- Mr. Ashish Dhirawani
Holding
Ishita Investments and its proprietor Mr. Ashish Dhirawani were held guilty of violating Regulation 4(a) of the PFUTP Regulations, 1995 for placing buy orders at the upper circuit level for nearly 2,70,000 shares of Hitech Drilling Services India Limited on behalf of clients on March 14-16, 2001, and were warned to strictly abide by laws governing dealings in the securities market.
Full text
Page 2 of 9 to as DSE). The shares of the company are also permitted to be traded at National Stock Exchange of India Limited. The investigation conducted by SEBI observed that the shares of the company were being traded in the range of Rs.32/- to Rs.40/- between March 1, 2001 and March 13, 2001. However, from March 14, 2001, the share price of the company touched the upper circuit limit till March 16, 2001. The price of the shares went up from Rs.35.75/- on March 14, 2001 to Rs.53.05/- on March 16, 2001. It was observed that Ishita Investments, proprietor of which was Mr. Ashish Dhirawani, placed orders for nearly 2,70,000 shares of the company on March 14, March 15 and March 16, 2001 on behalf of Mr. Paresh Thakkar, Mr. Bharat Palan and M/s. Vinayak Investments. The investigation of SEBI observed that the said orders were placed through the stock broker viz. M/s S A Deshpande (Member, BSE). Further, it was observed that Ishita Investments was not a registered sub broker during the relevant period. In view of the aforesaid trading pattern, it was alleged that Ishita Investments and its proprietor Mr. Ashish Dhirawani prima facie violated Regulation 4(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). Accordingly, a notice dated February 3, 2006 was issued to Ishita Investments and Mr. Ashish Dhirawani asking them to show cause a
Page 3 of 9 stated, “I further most respectfully submit that I never dealt in past in such transactions nor I have intentions to do so, on the contrary it is Paresh Thakkar and others who had used me and taken advantage of my goodness and co- operation.”
Page 4 of 9 14.03.2001 Purchase 18199 37.99 15.03.2001 Purchase 17571 46.00 16.03.2001 Purchase 1,00,001 53.00 22.03.2001 Sale 50,000 84.70 23.03.2001 Sale 41,909 85.15 26.03.2001 Sale 70,812 85.05
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Source: SecMarx — sebi:WTM/KMA/IVD/64/04/2009. 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.