sebi:WTM/MSS/ISD/33/10
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Facts / Headnote
Violation of regulation 3(a) and (c) of PFUTP Regulations established; unlawful gains impounded and noticee restrained from dealing in securities for three years
Provisions invoked
- s. 11
- s. 19
Regulations
- Reg. 11
- Reg. 3
- Reg. 3(a)
Parties
- Ms. Kirtiben Patel
Holding
The noticee, Ms. Kirtiben Patel, violated regulation 3(a) and (c) of the PFUTP Regulations by participating in a scheme with connected buyers to provide an assured exit to the QIB on the day of listing of NCL shares through structured trades. Her unlawful gains are impounded and she is restrained from buying, selling or dealing in the securities market for three years.
Full text
Page 2 of 8 shares. Therefore, they violated the provisions of regulation 3 (a) and (c) of the Securities and Exchange Board of India (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 2003 (PFUTP Regulations). Accordingly, the SCN called upon the noticee to show cause as to why suitable directions under regulation 11 of the PFUTP Regulations read with Sections 11(4) and 11B of the SEBI Act, 1992, including a direction to impound and retain the money already withheld, should not be passed against them.
Page 3 of 8 Original Order Modified Order Name of Connected Buyer Time Price (Rs.) Time Price (Rs.) Sonaliben Dhirenbhai Vora 9:56:27 39.00 10:35:36 46.50 Park-Light Securities Limited 9:57:52 39.00 10:35:38 46.50 Deep Infrastructure Pvt. Ltd. 9:58:35 39.00 10:35:41 46.50 Smitaben N. Shah 10:10:14 30.00 10:35:53 46.50 Tejas Patel 10:10:21 30.00 10:35:50 46.50 Deven Patel 10:10:29 30.00 10:35:47 46.50 Noticee 10:10:39 30.00 10:35:44 46.50 Rupesh Balwantbhai Brambhatt 10:10:49 30.00 10:35:41 46.50 Rajesh Balwantbhai Brambhatt 10:11:00 30.00 10:35:37 46.50 10:36:10 46.50 No modi 46.50 10:36:18 46.50 No modi 46.50 10:36:26 46.50 No modi 46.50 Mahesh Kumar Gandhi 10:36:39 46.50 No modi 46.50 5.2 Venus, who had received 9,61,539 NCL shares, placed a sale order of 9,61,538 shares at 10:53:47 AM on December 29, 2006 on BSE through the broker, M/s. IKAB Securities and Investment Ltd. at a limit price of Rs.47.50. The connected buyers, who had placed orders through different brokers prior to the sale order of Venus, modified their orders to a uniform price of Rs.47.50 within 32 seconds of the sale order of Venus during a 15-second window from 10:54:04 AM to 10:54:19 AM. These modifications resulted in trades for 9,20,638 shares between Venus and the connected buyers. The details of these orders are as under: Original Order Last Modification Name of Connected Buyer Time (AM) Price (Rs.) Time (AM) Price (Rs.) 10:44:58 30.00 10:54:04 47.50 10:44:42 30.00 10:54:07 47.50 Mahesh Kumar Gandhi
Page 4 of 8 No. of NCL shares bought from Vacuf on NSE Venus on BSE ITF on NSE Name of Buyer Quantity Time (AM) Quantity Time (AM) Quantity Time (AM) 99,000 10:36:10 10,624 10:54:04 -- -- 98,996 10:36:18 98,000 10:54:07 -- -- 81,557 10:36:26 95,800 10:54:09 -- -- Mahesh Kumar Gandhi
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Source: SecMarx — sebi:WTM/MSS/ISD/33/10. 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.