sebi:WTM/PS/152/IVD/FEB/2016
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Facts / Headnote
Interim direction to impound alleged unlawful gains jointly and severally, freeze bank and demat debits, require escrow deposit and asset inventory; final adjudication on merits pending
Provisions invoked
- s. 11(4)
- s. 19
- s. 104
Regulations
- Reg. 2
- Reg. 2(c)
- Reg. 2(e)
- Reg. 2(h)
- Reg. 2(c)(i)
Holding
SEBI ordered impounding of Rs.2,22,14,383, comprising alleged gains of Rs.1,65,59,129 plus interest of Rs.56,55,254, jointly and severally from 15 persons, with freeze on debits and direction to deposit in escrow.
Full text
Page 2 of 15 3. The investigation alleged that Mr. Palem Srikanth Reddy, who is also the Chairman and Managing Director (CMD) of PTL, Ms. P. Soujanya Reddy, Mr. Ameen Khwaja, Ms. Noorjahan Khwaja, Mr. Ashik Ali Khwaja, Ms. Rozina Hirani Khwaja, Ms. Shefali Ameen Khwaja, Mr. Shahid Khwaja, Ms. Kukati Parvathi, Mr. Pirani Amyn Abdul Aziz, Mr. Karna Ramanjula Reddy, Mr. Umashankar S, Ms. Raja Lakshmi Srivaiguntam, Mr. Prakash Lohia and Mr. Mohan Krishna Reddy Aryabumi had traded in the scrip of PTL during the investigation period, while in possession of ‘price sensitive information’ (hereinafter also referred to as ‘PSI’). The PSI and the price of the scrip before and after the PSI became public are as under: TABLE - 1
Page 3 of 15 PTL also reported to the exchange about the proposed reduction in the capital of PTL. Exchange Open High Low Close NSE 13.80 13.80 13.80 13.80 BSE 12.75 12.75 12.75 12.75
Page 4 of 15 disclosure agreement was executed between Kewill group and PTL. The non- disclosure agreement (having a confidentiality clause) was a binding contract on both the sides. Disclosure of the agreement would certainly have an impact on the deal. Therefore, the same can be considered to be an ‘unpublished price sensitive information’ (hereinafter referred to as ‘UPSI’) which had definitely originated on September 18, 2012 and the same had remained unpublished till August 10, 2013 at 13:01 hrs., in terms of the Regulation 2(ha)(vi) of the PIT Regulations. The period of such UPSI was from September 18, 2012 to August 10, 2013. - Trading window closure period: PTL had informed that the Company had closed the trading window from August 08, 2013 to August 13, 2103.
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Source: SecMarx — sebi:WTM/PS/152/IVD/FEB/2016. 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.