sebi:WTM/PS/49/EFD-DRA1/JUN/2016
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Facts / Headnote
Directions issued: 5-year restraint from securities market access for all noticees; Dipak Patel barred from associating with intermediaries/SEBI-registered entities for 5 years; KB Patel directed to disgorge Rs.85,18,043.34 in addition to Rs.1,12,68,659.35 already deposited with NSE.
Provisions invoked
- s. 11(4)
- s. 19
- s. 11B
- s. 11
- s. 15H
Regulations
- Reg. 11
- Reg. 3
- Reg. 3(a)
Parties
- Mr. Kanaiyalal Baldevbhai Patel (KB Patel)
- Mr. Dipak Patel
- Mr. Anandkumar Baldevbhai Patel (AB Patel)
- M/s. Bhoomi Industries
Holding
The noticees were held to have violated regulations 3(a)-(d) of the PFUTP Regulations by front running Passport India's trades, and directions were issued restraining them from accessing the securities market for 5 years, with KB Patel directed to disgorge unlawful profits of Rs.85,18,043.34 in addition to Rs.1,12,68,659.35 already deposited.
Full text
Page 2 of 22 investigation in the matter for the period - January 1, 2007 toMarch 31, 2009 (“the investigation period”).
Page 3 of 22 3. Pending investigations, based on the prima facie findings, SEBI, vide an ad interim ex-parte order dated May 28, 2009 (“interim order)”, inter alia, restrained Mr. Dipak Patel, portfolio manager of Passport India, KB Patel, AB Patel and Bhoomi Industries from buying, selling or dealing in any securities, directly or indirectly, till further directions, for the reasons stated therein. Mr. Dipak Patelwas also directednot to associate himself with anyFII, sub-account or any registered entity of SEBI, till further orders. KB Patel and AB Patel were directed to deposit the profits amounting to 1,12,68,659.35/- with the NSEwithin fifteen days from the date of the said order. Further, the interim order also directed Passport India LLC and its sub-account, Passport India to conduct an internal enquiry and initiate appropriate action against their employee, Mr. Dipak Patel and to submit an ‘action taken report’ within thirty days. Further, they were also directed to take steps to ensure that their trading information and other trade related details are not misused to the detriment of market integrity.
Page 4 of 22 2012, set-aside the said orders for reasons made therein. SEBI has preferred appeals against the Orders of Hon’ble SAT before the Hon’ble Supreme Court and such appeals are pending.
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Source: SecMarx — sebi:WTM/PS/49/EFD-DRA1/JUN/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.