sebi:WTM/PS/73/IVD/ID-04/JAN/2011
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Facts / Headnote
Ami Impex (proprietor Deven Mehta) restrained from buying, selling or dealing in securities market for six months; Deven Mehta given benefit of doubt on the charge of creating artificial volume.
Provisions invoked
- s. 11
- s. 19
Regulations
- Reg. 11
- Reg. 4
- Reg. 4(b)
Parties
- Deven Mehta
- Ami Impex (proprietor Deven Mehta)
Holding
Ami Impex was found guilty of violating Regulation 4(b), (c) and (d) of the PFUTP Regulations for executing structured deals that created artificial volume in the scrip of Sunearth, and was restrained from accessing the securities market for six months. Deven Mehta was given benefit of doubt on the charge of creating artificial volume as the charge was not established.
Full text
Page 2 of 9 27, 2000 and closed at `180 on February 02, 2001. Thereafter, the company went for stock split of its shares from the face value of `100 per share to `10 per share from February 05, 2001.
Page 3 of 9 Motwani. Further, it was alleged that the shares of Sunearth were received by Deven Mehta, who in turn arranged the money in lieu of such shares and used the shares for trading purposes. Another noticee, Ami Impex was found executing various structured deals in the scrip of Sunearth. The SCN, therefore, alleged that the acts of noticees were in violation of Regulations 4 (b), (c) and (d) of the PFUTP Regulations. Accordingly, the SCN called upon the noticees to show cause as to why appropriate action under Sections 11 and 11B of the SEBI Act read with Regulation 11 of the PFUTP Regulations, including an order of debarment from the securities market for a specific period should not be issued against them.
Page 4 of 9 6. I have carefully considered the SCN, reply of the noticees, written submissions and the material available on record. The submissions of the noticees, in brief, are:
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Source: SecMarx — sebi:WTM/PS/73/IVD/ID-04/JAN/2011. 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.