sebi:WTM/SKM/EFD1-DRAI/13/2019-20
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Facts / Headnote
Noticee no. 2 (Mr. Pradeep Dhanuka) found in violation of SEBI Act and PFUTP Regulations and restrained from accessing the securities market for three years; charges against Noticee no. 1 (Mr. Girraj Agrawal) not established and SCN disposed of.
Provisions invoked
- s. 11B
- s. 19
- s. 12A
Regulations
- Reg. 3
- Reg. 4
- Reg. 4(1)
Parties
- Mr. Girraj Kishor Agrawal (Noticee no. 1)
- Mr. Pradeep Dhanuka (Noticee no. 2)
Holding
Noticee no. 2, Mr. Pradeep Dhanuka, was found to have engaged in manipulative trades that artificially raised the price of Banas Finance Ltd. shares in violation of the SEBI Act and PFUTP Regulations, and was restrained from accessing the securities market for three years. The charges against Noticee no. 1, Mr. Girraj Agrawal, were not established for want of evidence of connivance.
Full text
Order in the matter of M/s. Banas Finance Ltd. Page 2 of 23 Ms. Tanu Giriraj Agarwal Additional Director Director Mr. Ashwin Jayantilal Shah Director Director Mr. Tushar Ramchandra Rane Director Director Ms. Saloni Girraj Agrawal Additional Director Managing Director Mr. Praveen V. Vasishth - Additional Director (Source: Annual Reports of Banas for FY 2010-11, 2011-12)
Order in the matter of M/s. Banas Finance Ltd. Page 3 of 23 7. The investigation has further revealed that Anmol Finance is a sole proprietorship and Shri Rajesh Tukaram Dambre is the sole proprietor. Anmol Finance was holding 11,500 shares in its demat account at the beginning of the Investigation Period and these shares were purchased by Anmol Finance (which constitutes 3.83% of paid up capital of ‘Banas’) through off market from an erstwhile promoter of the Company (Banas) viz:- Alefiya Shabbir Khorakiwala on August 17,
Order in the matter of M/s. Banas Finance Ltd. Page 4 of 23 the documents that have been relied upon in the SCN have been enclosed with the SCN. I note that pursuant to the issuance of SCN, Noticee no.1 has submitted a letter dated March 8, 2016 seeking documents relied upon by SEBI in the instant proceedings. Accordingly, inspection of such documents which have been referred to and relied upon in the SCN was provided to the Noticee no. 1 on March 23, 2016. The Noticee no. 1 has subsequently submitted a written reply to the SCN vide his letter dated July 5, 2017. It is also noted that Noticee no. 2 has submitted a letter dated March 18, 2017, seeking documents relied upon by SEBI in the instant proceedings. Accordingly, copies of the relevant documents were further provided to both the Noticees vide letters, of even dated July 19, 2017.
You have read the preview. Create a free account to read the full order, track this party, and analyse it in Ontology.
Free accounts include 10 searches/day with full order access.
Source: SecMarx — sebi:WTM/SKM/EFD1-DRAI/13/2019-20. 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.