sebi:WTM/PS/60/IVD/ID-06/JAN/2012
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Facts / Headnote
Restrained Shri Harshad Shah from buying, selling or dealing in securities and from associating in securities market in any manner whatsoever for a period of one year.
Regulations
- Reg. 11
- Reg. 4(a)
Parties
- Harshad M. Shah
Holding
SEBI held that Harshad M. Shah, as director of Rosewood, Shivam and Pradeepak, violated Regulations 4(a), (b), (c) and (d) of the SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 1995, and restrained him from buying, selling or dealing in securities and from associating with the securities market for a period of one year.
Full text
Page 2 of 6 3. Accordingly, SEBI issued 3 separate notices dated May 26, 2004 (hereinafter referred to as ‘SCNs’) to Harshad M. Shah (hereinafter referred to as the ‘noticee’) in his capacity as director of Rosewood, Shivam and Pradeepak, respectively. Subsequently, SEBI vide its
Page 3 of 6 Shah submitted a letter dated November 12, 2009 enclosing the copy of his depository statements showing his holdings as of September 2004 and September 30, 2009 to show that he had not liquidated his holdings during the 5 year period, even after the freeze on the demat account was lifted as per the SAT order.
Page 4 of 6 10. Subsequently, SEBI conducted an investigation into the affairs relating to buying, selling and dealing in the shares of Cyberspace. It was found that the promoters of Cyberspace and CCL had acted in concert with certain shell companies and circulated shares of the company amongst themselves with a view to raise the price and volume of the scrip artificially and they created false market. Thereafter, CCL defaulted and the price of the scrip started crashing by 16% on daily basis.
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Source: SecMarx — sebi:WTM/PS/60/IVD/ID-06/JAN/2012. 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.