sebi:WTM/PS/84/IVD/ID-03/MARCH/2012
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Facts / Headnote
Directions issued against the nineteen entities vide ex-parte ad interim Order dated May 27, 2011 confirmed; ad interim directions continued till further directions.
Provisions invoked
- s. 19
Holding
The directions issued against the nineteen additional entities/individuals vide the ex-parte ad interim Order dated May 27, 2011 in the matter of 'Synchronized Trading by Connected Persons' are confirmed and continued till further directions.
Full text
Page 2 of 13 as these were prima facie found to have acted as a group and played key role in creating artificial volumes in the scrips namely All Cargo Global Logistics Limited, Asian Star Co. Limited, KSL & Industries Limited, Mavens Biotech Limited, Panoramic Universal Limited, Rasi Electrodes Limited, Sat Industries Limited and Ushdev International Limited during the periods of March 01, 2009 to June 30, 2009 (Period 1) and July 01, 2009 to September 20, 2009 (Period 2). The interim directions were confirmed against all of these persons/ entities vide another order of SEBI dated October 06, 2010.
Page 3 of 13 2 these would be collectively referred to as ‘stated scrips’ and individually by their respective names. 4. I note that the modus operandi of all these entities to create artificial volumes in the stated scrips has been described in detail in the interim orders dated February 20, 2010 and May 27, 2011. Based on the material available on record, I observe that one Mr. Sunil Mehta and/ or his associates was allegedly executing the trades in the accounts of most of the above mentioned entities. It was prima facie revealed that Sunil Mehta and his associates had solicited the persons/ entities for opening and operating their accounts by promising cash benefits. Subsequent to this, Sunil Mehta was also seen to be operating/ controlling/ using their trading accounts for manipulative activities in the stated scrips. Sunil Mehta and his associates opened trading accounts for the said entities with one stock broker, operated it for certain time and thereafter opened another trading account for the very same entities with other stock brokers, so that his manipulative activities will not be detected. Thus, Sunil Mehta and his associates were able to open different accounts and use them for the alleged manipulative activities in the stated scrips. Further, it was observed that in most of the cases, the initial funds to start the trading were deposited in the account of the entities in cash, allegedly provided by Sunil Mehta and/ or his associates. It has been also revealed t
Page 4 of 13 2011, July 05, 2011 and June 02, 2011 respectively. Manish Mathur, Sunil Mehta, Ms. Anjana Mehta and Ajay Roongta also sought some details/ documents from SEBI which were provided to them. The submissions of the entities in brief are:
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Source: SecMarx — sebi:WTM/PS/84/IVD/ID-03/MARCH/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.