sebi:WTM/PS/191/IVD/MAR/2016
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Facts / Headnote
Interim ex-parte order impounding unlawful gains of ₹61,73,403 from Kamal Jitendra Katkoria, freezing bank and demat accounts, and restraining disposal of assets including a flat held by his wife and mother
Provisions invoked
- s. 11(4)
- s. 19
- s. 12A
Regulations
- Reg. 3(a)
Parties
- Kamal Jitendra Katkoria
Holding
SEBI impounded unlawful gains of ₹61,73,403 (₹37,99,818 in front-running profits plus ₹23,73,585 interest at 12% p.a.) from Kamal Jitendra Katkoria as an interim measure, and directed freezing of his bank and demat accounts and restraint on disposal of assets including a flat purchased with ill-gotten gains.
Full text
Page 2 of 11 from accessing the securities market and also prohibited him from buying, selling and otherwise dealing in the securities market, directly or indirectly, in any manner whatsoever for a period of three years.
Page 3 of 11 Schachter Jewelry Pvt. Limited or any of his related entities/ directors/ shareholders have taken any money from Kamal. The statements of Colin and Mr. Pradeep Shah (the erstwhile CFO of Colin’s company Kama Schachter Jewelry Pvt. Limited) were also recorded during the course of investigation.
Page 4 of 11 in favour of his mother, Ms. Saroj Katkoria, vide ‘gift deed’ dated November 08, 2013. The transfer of shares was approved on September 29, 2014 in the Annual General Meeting of the society where the flat was situated. No other transfer of the subject flat was observed during the years of 2010 - 2014. The chronology of events in respect of the trades and the flat are summarised, as follows: TABLE A Date/ Period Nature/ description of Event January 01, 2010 to December 31, 2010 Front running by Kamal and earning an ill-gotten gain of ₹37,99,818 July 08, 2010 Purchase of flat from ill-gotten gains having address at Kandiwali (West) Mumbai August 08, 2013 Show cause notice was issued to Kamal by SEBI October 11, 2013 Opportunity of personal hearing to Kamal (The letter was sent twice however the same had returned undelivered with remark ‘refused to accept’ and ‘unclaimed’. November 08, 2013 The shares of the aforesaid flat were transferred by Kamal to his mother vide a gift deed. November 12, 2013 Kamal submitted reply to the SCN dated August 08, 2013 stating that “due to some family problem he was out of town and hence he could not reply to the SCN earlier”. December 17, 2013 Personal hearing before the Competent Authority.
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Source: SecMarx — sebi:WTM/PS/191/IVD/MAR/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.