sebi:WTM/RKA/ISD/59/2013
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Facts / Headnote
Directions issued vide ad interim ex-parte order dated April 18, 2013 restraining noticees from accessing securities market confirmed and to remain in force till further directions
Provisions invoked
- s. 11
- s. 19
- s. 11(1)
- s. 11(4)
- s. 11B
- s. 12A
- s. 12
- s. 11A
- s. 12(3)
Regulations
- Reg. 11
- Reg. 3
- Reg. 200
- Reg. 3(a)
Parties
- Jipal Pineshkumar Shah
- Saurin Pravinbhai Shah
- Bhavini Vijaykumar Shah
- Vijay Babulal Shah
- Jagdish Ramanalal Patel
- Pankaj N. Patel
- Ronak P. Patel
- Urmila G. Patel
- Hema G. Patel
- Daivik Jatinbhai Shah
- Gulab Chand Pukhraj Surana
- Dipin Surana
- Ravi Pukhraj Surana
Holding
In exercise of powers under section 19 read with sections 11(1), 11(4) and 11B of the SEBI Act, the Whole Time Member confirmed the ad interim ex-parte order dated April 18, 2013 against the 13 noticees. The restraint from accessing the securities market and prohibition from buying, selling or dealing in securities shall remain in force till further directions.
Full text
Page 2 of 12 2012 to ₹ 41.40 on August 6, 2012 i.e., a price fall of 73.13 %. The price further declined to ₹ 30.25 per share on September 17, 2012. SEBI also observed similar price movement and pattern of dealings in the scrip of 8K Miles Software Solutions Ltd. (8KMILES).
Page 3 of 12 a) They do not come under SEBI’s jurisdiction for the purpose of section 11(1),11(4) and 11B of SEBI Act. b) They have not received the following documents: i. Copy of full Investigation Report; ii. Copy of order log; iii. Copy of documents / information / material relied upon by SEBI to infer relation / connection with other entities. c) They are retail investors, trading in different scrips independently and during the investigation period have traded in shares of other companies also.
Page 4 of 12 The impact on the price rise of the shares of PMTL or 8KMILES if any, was normal and not manipulative as alleged. m) First trades at higher than previous closing market price is not against any trading regulation and since the quantity of such trades was miniscule, were stray / erratic trades, they do not accept the inference that the intention was to increase the price of the scrip in case of trades involving small quantities of shares. n) Further, on account of not having provided complete data, they cannot be called upon to explain the case in violation of principles of natural justice. o) They have not indulged in group trades or self trades or price manipulation. p) The market price of 8KMILES got corrected on account of bonus shares and that it cannot be said that the entities have contributed to increase/decrease of the share price. q) They have not violated provisions of regulations 3(a) and (b), 4(1) and (2) (a), (b) of the SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003 (PFUTP Regulations) and section 12(A) (a), (b) and (c) of the SEBI Act as alleged or otherwise. r) The charges leveled against them be dropped and any direction under section 11 and 11B of SEBI Act read with regulation 11 of PFUTP Regulations 2003 should not be issued against them in the interest of justice.
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Source: SecMarx — sebi:WTM/RKA/ISD/59/2013. 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.