sebi:WTM/RKA/IVD-ID1/6/2012
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Facts / Headnote
Show Cause Notice disposed of without passing any further directions against the noticees
Provisions invoked
- s. 19
- s. 12A
Regulations
- Reg. 11
- Reg. 3
Parties
- Mahendra C. Shah
- Hasu M. Shah
Holding
The Show Cause Notice dated August 18, 2011 against Mahendra C. Shah and Hasu M. Shah was disposed of without passing any further directions, as the noticees had already suffered sufficient penalty for their violations through prior SEBI orders.
Full text
Page 2 of 10 (a) The company and its Managing Director Mr. Mahendra C. Shah had indulged in making misleading and premature announcements, showing partly paid-up shares as fully paid-up shares without receiving allotment money, etc. The said false and misleading information had induced the innocent investors to purchase the shares of the company at high prices and also created false and artificial market for the scrip of the company. (b) Mr. Sanjay B. Shah was hand in glove with Mr. Mahendra C. Shah in the above acts, and transferred the shares of the company held by Ceetee Trading to a group of connected clients, who in turn used these shares for manipulation in the securities market.
Page 3 of 10 5. In view of the above, the investigation in the matter of company with respect to Ceetee Trading and its director Mr. Sanjay B. Shah was again initiated in order to ascertain the identity of persons who were in charge of Ceetee Trading during the relevant period. Since Mr. Sanjay B. Shah had denied any authorisation of Mr. Prakash K. Shah, advocate, SEBI sought an opinion form the Government Examiner of Questioned Documents, Directorate of Forensic Science, at Hyderabad (hereinafter referred to as “the handwriting expert”). The handwriting expert vide letter dated May 18, 2010 opined that :
Page 4 of 10 Board of India or with any securities market participant, in any capacity, till further orders.” 7. The noticees filed their objections vide separate letters dated August 23, 2010. An opportunity of cross examination of Mr. Mohinder Singh, the Government Examiner of Questioned Documents, Directorate of Forensic Science was also provided to Mr. Mahendra C. Shah on December 16, 2010.
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Source: SecMarx — sebi:WTM/RKA/IVD-ID1/6/2012. 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.