sebi:WTM/RKA/IVD/NRO/152/2014
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Facts / Headnote
Restrained M/s. Shiv Vani Associates and its proprietor Mr. Manish Bansal from accessing the securities market and prohibited them from buying, selling or otherwise dealing in securities for a period of one year.
Provisions invoked
- s. 11B
- s. 11(4)
- s. 19
- s. 12(1)
Regulations
- Reg. 11
- Reg. 4
- Reg. 13
- Reg. 4(a)
- Reg. 12
Parties
- M/s Shiv Vani Associates
- Mr. Manish Bansal
Holding
The Noticees, M/s Shiv Vani Associates and its proprietor Mr. Manish Bansal, were found to have violated regulation 4(a), (b) and (c) of the PFUTP Regulations, 1995 read with regulation 4(2)(a) and (e) of the PFUTP Regulations, 2003, and rule 3 of the Stock Brokers Rules, 1992 read with section 12(1) of the SEBI Act, 1992, by lending their name to provide a link to the SML group for rigging the share price of SML. They were restrained from accessing the securities market and dealing in securities for a period of one year.
Full text
Order in respect of Shiv Vani Associates & Another Page 2 of 6 had admitted that they were trading for SML group. They have also stated that they were introduced to SML group by Mr. P. K. Agarwal who is a Chartered Accountant and also a friend of Mr. Praveen Juneja, director of SML. Mr. P. K. Agarwal reportedly played an instrumental role in managing the share price manipulation for SML. It has been contended by Mr. I. C. Jindal of Vandana that Mr. P. K. Agarwal used to place orders on behalf of Dhanvarsha and Prasneeta.
Order in respect of Shiv Vani Associates & Another Page 3 of 6 (c). M/s Shiv Vani Associates was introduced to Adroit by Mr. I. C. Jindal, director of Vandana. Mr. Manish Bansal, in his statement dated December 13, 2003 had stated that the firm was involved in buying and selling in shares of SML for various clients and the affair of this firm were handled by his elder brother Mr. Amit Bansal, a director of Maheshwari. Mr. Ajay Kumar Gupta, director of Adroit has also stated in his statement that Mr. Amit Bansal was placing orders and receiving deliveries for M/s Shiv Vani Associates. (d). Mr. Manish Bansal had also stated that orders in SML were received from Mr. I. C. Jindal. Vandana had also admitted that shares were purchased from M/s. Shiv Vani Associates. (e). Mr. Manish Bansal had lent name of M/s Shiv Vani Associates thereby provided a link to SML group for rigging the share price of SML and thus aided and abetted the market manipulation in the scrip of SML by Vandana, Mr. I. C. Jindal and SML group. (f). It was alleged that the Noticees have violated provisions of regulation 4(a), (b) and (c) of the PFUTP Regulations, 1995 read with regulation 4 (2) (a) and (e) of the PFUTP Regulations,
Order in respect of Shiv Vani Associates & Another Page 4 of 6 regulations of the SEBI Act, 1992 is highly un-justified and unfair. (h) SEBI has completely failed to establish as to whether the alleged price rise induced any person/entity to actually buy the shares of SML and whether there was any loss incurred by any person/entity who might have purchased the shares of SML after the alleged false rise in shares of the SML. (i) The said show cause notice is infructuous as no action as contemplated in the said notice could now be taken as the Noticees have already stopped doing business in the securities.
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Source: SecMarx — sebi:WTM/RKA/IVD/NRO/152/2014. 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.