sebi:WTM/PS/16/IVD/ID-04/NOV/09
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Facts / Headnote
Noticees restrained from buying, selling or dealing in securities market or accessing the securities market, directly or indirectly, for a period of six months from the date of the order; order to be served on all recognized stock exchanges and depositories.
Provisions invoked
- s. 11B
- s. 11
Regulations
- Reg. 11
- Reg. 4
- Reg. 13
- Reg. 4(a)
Parties
- Mr. Piyush Jhaveri (PAN: AEFPJ 0864C)
- Mr. Anil D. Modi (PAN: AGWPM 7244E)
- Mr. Ashish P. Shah (PAN: AJRPS 7737C)
Holding
The charges against the Noticees of violating Regulation 4(a), (b), (c) and (d) of the PFUTP Regulations by indulging in circular/reversal trades and creating artificial volume in the scrip of OMML are established, and the Noticees are restrained from accessing the securities market for six months.
Full text
Page 2 of 12 was found that it had incurred a loss of Rs.3.21 lacs for the financial year ended March 2001, and earned a negligible profit of Rs.2.98 lacs in the financial year ended March 2002 on a paid up capital of Rs.3.49 crore. During the year ended on March 2003, the profit of the company remained unchanged at Rs.2.98 lacs. Investigations revealed that there was no trading in the scrip in the rolling settlement during July 1, 2001 to April 8, 2002, during this period the scrip was traded just for three days in the physical segment. During the period under investigation, the price of the scrip opened at Rs.15.10 on April 8, 2002, touched a high of Rs.37.95 on July 9, 2002 and closed at Rs.35.50 on July 9,
Page 3 of 12 4. The SCNs were duly served on the Noticees as seen from the report furnished by the Ahmedabad Stock Exchange vide its letter dated July 02, 2008 . However, none of the Noticees replied to the SCN. They were given reminders which were also duly served but no reply was received by SEBI till date from the Noticees. Pursuant to this, in order to proceed with the matter an opportunity of personal hearing was granted to all the Noticees before me on September 16, 2009. Again, none of the Noticees appeared for the personal hearing in spite of due intimation, as seen from the acknowledgement received from the Noticees. Moreover, they have not requested for another opportunity of hearing. In view of this, I am compelled to proceed with the matter ex-parte, on the basis of material available on record, as against the Noticees, having complied with the principles of natural justice.
Page 4 of 12 b. During the first period, the scrip of OMML was traded just for 4 days for a total volume of 42,500 shares. For these 42,500 shares the entire trading was among five clients only, as detailed in the following table. I note that these trades were executed in 186 trades featuring 20 buy orders and 9 sell orders. As stated earlier the scrip opened at Rs.15.10 on April 8, 2002 and within 4 trading days it went up to Rs.23.75. I note that, during this period only limited numbers of trades were there. Table – A Gross Purchase Gross Sales Broker Sub- Broker Major Ultimate Client Shares % Shares % Ashish P. Shah 10,000 23.53 27,500 64.71 Vrajesh Patel 3,000 7.06 0 0.00 P. Suryakant Shri Parshwa Finance Anil D. Modi 0 0.00 2,000 4.71 FMS Securities
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Source: SecMarx — sebi:WTM/PS/16/IVD/ID-04/NOV/09. 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.