sebi:WTM/RKA/ISD/169/2016
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Facts / Headnote
Interim order directions continued; noticees permitted limited reliefs including orderly sale of securities held in demat accounts (excluding suspended scrips) under stock exchange supervision with proceeds deposited in an interest-bearing escrow account, and permitted to undertake delivery-based transactions in NSE Nifty 500/S&P BSE 500 scrips, mutual fund units, debt/government securities, ETFs, corporate actions, and tender shares in open/delisting offers. Order to continue till further directions.
Provisions invoked
- s. 11
- s. 19
- s. 11(1)
- s. 12A
- s. 11(2)
- s. 10(38)
Regulations
- Reg. 2(1)(c)
- Reg. 3(a)
Holding
The WTM of SEBI upheld the interim order against the noticees, finding that Kailash Auto Group I and Group II entities acted in concert to provide artificial exit to beneficiaries at inflated prices, creating artificial volume and enabling beneficiaries to claim LTCG tax exemption, and continued the market access restrictions with certain limited relaxations for business and liquidity needs.
Full text
Order in the matter of Kailash Auto Finance Limited Page 2 of 51 23 Veena Rajesh Sarda AHAPS4880R 24 Chandadevi Ramswarup Sarda AHAPS4924L 25 Rajesh Ramswarup Sarda AHAPS4925M 26 Ramasamy Santhamani ALJPS3141G 27 OmPrakash Agrawa lHuf AAAHO5501J 28 Omprakash Agrawal ACIPA3823H 29 Rahul Agrawal AEXPA9696R 30 Vikas Agrawal AFBPA9883M 31 Shilpa Agrawal AHQPK3316G 32 Nikita Agrawal AOTPA7379H 33 Ashish Singhania BFWPS0721Q 34 Pratapsinh Ganpatrao Jadhav AAYPJ1003C 35 Charanjeet Singh ADWPS5227Q 36 Geetha Jain ADEPG7030K 37 Abhishek Agarwal AFTPA0939C 38 Sangeeta Sachdev AODPS3657L 39 Dilipkumar S Jain AFEPJ8660G 40 SherSingh Agarwal HUF AAAHS9623K 41 Dinesh Shersingh Agarwal AAAPA5629D 42 Shersingh Agarwal AADPA3198C 43 Dharam Paul ACGPP5575P 44 Neeraj Kumar AGVPK7036P 45 Satish Jain AAFPJ6142B 46 Sandhya Jain AAGPJ0189B 47 Sunil Kumar Jain AAHPJ7196B 48 Sarda/ Ghanshyam Sarda HUF AAEHS0587A 49 Uma Sarda AKBPS4386G 50 Rajendra Neminath Shete AACHR9687J 51 Nilavati Niminath Shete ACZPS8442H 52 Manisha Rajendra Shete ACZPS8514N 53 Rajendra Neminath Shete ACZPS8515P 54 Niranjan Rajendra Shete BOTPS0314D Entities at Sl. No. 06 to 54, hereinafter, collectively referred to as “beneficiaries” or individually by their respective names. The aforesaid entities at Sl. No. 1 to 54, hereinafter, referred to by their respective names or by their respective categories or collectively as “the noticees”.
Order in the matter of Kailash Auto Finance Limited Page 3 of 51 Kailash Auto Finance Limited (hereinafter referred to as “Kailash Auto”) and 245 other entities including the noticees, from accessing the securities market and further prohibited them from buying, selling or dealing in securities, either directly or indirectly, in any manner, whatsoever, till further directions. The persons/ entities against whom the interim order was passed, were advised to file their objections, if any, within twenty one days from the date of the interim order and, if they so desire, to avail themselves of an opportunity of personal hearing before SEBI.
Order in the matter of Kailash Auto Finance Limited Page 4 of 51 paid by the beneficiaries and the same was transferred, directly or through multiple layering, by recipients of CPAL shares and recipients of PML shares to the entities belonging to Kailash Auto Group I and Kailash Auto Group II or entities controlled by CPAL/ PML.
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Source: SecMarx — sebi:WTM/RKA/ISD/169/2016. 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.