sebi:WTM/KMA/IVD/97/07/2009
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Facts / Headnote
Ex-parte interim order dated April 23, 2009 confirmed against Mrs. Veena Kotecha; ad interim directions continued pending completion of investigation.
Provisions invoked
- s. 11
- s. 11(4)
- s. 19
- s. 11B
- s. 12
- s. 11A
- s. 15I
- s. 12(3)
Regulations
- Reg. 11
- Reg. 3
Parties
- Mrs. Veena Kotecha
Holding
The Whole Time Member confirmed the ad interim ex parte order dated April 23, 2009 restraining Mrs. Veena Kotecha from buying, selling or dealing in the securities market, holding that she was prima facie found to have aided Mr. Nirmal Kotecha by allowing her bank account to be used as a conduit for routing funds connected to the PSTL share price manipulation.
Full text
Page 2 of 23 that they may file their objections, if any, within thirty days from the date of the said order and, if they so desire, avail of an opportunity of personal hearing.
Page 3 of 23 g. That she is neither a SEBI registered intermediary nor a person associated with the securities market in terms of Section 12 of the Act and hence do not come within any of the category of persons specified therein; h. That the trade practices in respect of bank transactions are outside the purview 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) and therefore the directions based on the prima facie view that she has violated the provisions of the PFUTP Regulations is untenable; i. That she is necessarily a housewife and that she has no connection either directly or indirectly with the securities market; j. That the order has not made a single finding showing what the suspicious banking transactions were and no details regarding the same have been furnished in the
Page 4 of 23 personal hearing was given to her on July 01, 2009. In the meanwhile, Mrs. Veena Kotecha filed an appeal against the ad interim ex-parte order dated April 23, 2009 in Appeal No. 88 of 2009 before the Hon’ble Securities Appellate Tribunal. The Hon’ble Tribunal, vide order dated June 17, 2009 disposed of the said appeal after taking into consideration the submission made by the Learned Counsel for SEBI that “the whole time member shall consider the entire matter qua the appellants on July 1, 2009 on which day he shall afford them a personal hearing as well and thereafter pass an order on or before July 15, 2009”. Mr. Shyam Mehta, Advocate represented Mrs. Veena Kotecha and made submissions on her behalf before me on July 01, 2009. The learned counsel reiterated the objections/submissions made by Mrs. Veena Kotecha (vide letter dated May 15, 2009) and requested that the directions passed by SEBI against her be vacated at the earliest.
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Source: SecMarx — sebi:WTM/KMA/IVD/97/07/2009. 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.