sebi:WTM/MSS/ISD/98/2011
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Facts / Headnote
Directions issued: 3-month restraint from securities market, disgorgement of Rs.9,39,38,030 (unlawful gains of Rs.5,87,11,269 plus interest of Rs.3,52,26,761), with further 9-year restraint if amount not paid within 45 days
Provisions invoked
- s. 11B
- s. 11
- s. 11(4)
- s. 19
- s. 11(1)
- s. 12A
- s. 15H
- s. 15I
- s. 12(3)
Regulations
- Reg. 3
- Reg. 3(a)
Parties
- Mr. Purshottam G. Budhwani
Holding
The noticee violated Section 12A(a), (b) and (c) of the SEBI Act, Regulations 3(a)-(d) and 4(1) of the PFUTP Regulations and Guideline 1.2.1 (xxiva) read with Guideline 7.6.1.2.1 of the DIP Guidelines, 2000, by cornering shares meant for RIIs in 13 IPOs through afferent accounts, and was directed to disgorge Rs.9,39,38,030 and restrained from the securities market.
Full text
Page 2 of 11 documents and personal hearing to the noticee. The noticee filed a reply and also took inspection of documents. However, no order was passed.
Page 3 of 11 GOKUL 14,340 1,299 13,041 0 0 SHOPPERS 45,850 22,000 3,850 20,000 0 PROVOGUE 9400 680 0 8,000 720 YBL 1,69,940 57,518 1,12,245 0 177 MSP 51,000 30,000 0 20200 800 NECTAR 26,850 10,700 0 13,500 2,650 SPL 1,48,800 8,135 1,27,430 0 13,235 ILFS 40,450 15,750 21,900 0 2,800 IDFC 15,65,824 7,14,600 4,18,778 1,44,000 2,88,446 SASKEN 12,950 7,000 0 0 5,950 SUZLON 78,960 32,000 16,304 15,532 15,124 Table B: Unlawful gains made (Rs.) Unlawful gains of noticee from Name of IPO Market Sale Off-market Sale Balance with him Unlawful gains of Others Total 1 2 3 4 5 6 TCS 9,71,454 50,75,732 0 0 60,47,186 GATEWAY 20,61,774 0 0 25,00,185 45,61,959 GOKUL 2,65,775 26,68,189 0 0 29,33,964 SHOPPERS 29,61,200 32,10,210 0 26,92,000 88,63,410 PROVOGUE 8,50,206 0 70,524 7,83,600 17,04,330 YBL 9,08,784 17,73,471 2,796 0 26,85,051 MSP STEEL 1,59,000 0 4,240 1,13,322 2,76,562 NECTAR 2,15,070 0 53,265 3,80,703 6,49,038 SPL 2,71,302 42,49,791 4,41,387 0 49,62,480 ILFS 9,47,362 13,17,285 1,68,420 0 24,33,067 IDFC 2,04,00,100 49,69,885 1,02,54,255 0 3,56,24,240 SASKEN 14,31,850 0 12,17,073 0 26,48,923 SUZLON 51,95,000 29,81,186 27,65,423 23,08,464 1,32,50,073 Total 3,66,38,877 2,62,45,749 1,49,77,383 87,78,274 8,66,40,283
Page 4 of 11 4. The noticee appeared for a personal hearing on November 23, 2010 and submitted that he had not received the complete SCN. After hearing the noticee and the SEBI, it was directed that SEBI would provide the complete SCN once again and also inspection of documents and the noticee would reply to the SCN by December 20, 2010. Accordingly the hearing was adjourned to January 4, 2011. The noticee did not appear for the hearing on January 4, 2011. He was offered another opportunity of hearing on January 25, 2011 which he did not avail. He was offered still another opportunity of hearing on March 01, 2011. He filed a reply to the SCN vide his letter dated February 28, 2011 and appeared for the hearing on March 1, 2011. At the hearing, he made preliminary submissions and sought time for filing a written submission. He also sought a short adjournment with a statement that if he did not turn up at the adjourned hearing, the matter may be disposed of based on written submission which he would make soon. Accordingly the hearing was adjourned to March 7,
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Source: SecMarx — sebi:WTM/MSS/ISD/98/2011. 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.