sebi:WTM/SKM/EFD1-DRAI/9/2018-19
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Facts / Headnote
Restrained 9 Noticees from accessing securities market and prohibited from buying, selling or otherwise dealing in securities directly or indirectly or being associated with securities market for 7 years from date of order with existing holdings including mutual fund units frozen; no directions issued qua Rajnandi Yarns Pvt. Ltd. as struck off.
Provisions invoked
- s. 11B
- s. 19
- s. 12A
- s. 12
- s. 2(1)
Regulations
- Reg. 3
- Reg. 4(1)
Parties
- Shri Prem Mohanlal Parikh
- Shree Shagun Financial Services
- Shri Bhavesh Prakash Pabari
- Shri Ankit R Sanchaniya
- Shri Chirag Rajnikant Jariwala
- Rajnandi Yarns Pvt. Ltd.
- H. Bhavesh Securities and Commodities Pvt. Ltd.
- Shri Hemant Madhusudan Sheth
- Shri Bharat Shantilal Thakkar
- Shri Bipin Jayant Thaker
Holding
The Noticees of Pabari group indirectly dealt in securities by funding Jigar group trading entities during restraint period, creating artificial volume through circular/reversal and self-trades, violating Section 12A(a),(b),(c) of SEBI Act and Regulations 3(a),(b),(c),(d) and 4(1) of PFUTP Regulations and the SEBI restraint order dated February 02, 2011, and were restrained for seven years.
Full text
Order in the matter of Polytex India Ltd. Page 2 of 36 Commodities Pvt. Ltd 8. Shri Hemant Madhusudan Sheth ANOPS8607E 9. Shri Bharat Shantilal Thakkar AAZPT9542R
Order in the matter of Polytex India Ltd. Page 3 of 36 Investigation Period. It is also observed that the movement in the price of the Polytex was not in line with the movement in index. During the Investigation Period BSE Sensex decreased from 20,203.34 to 15,454.92 registering a decrease of 4,748.42 points (23.5%), whereas price of the scrip in BSE increased from Rs. 5.85 to Rs. 265.10 on September 2, 2011 and then closed at Rs. 129.05.
Order in the matter of Polytex India Ltd. Page 4 of 36 fund movement etc. with the Jigar group. Out of the 11 entities of Pabari group, 10 entities/persons were already restrained from dealing in securities market vide SEBI Order dated February 02, 2011, referred to above. Prima facie, I find the entities/persons of Jigar group and the Pabari group have not controverted their inter-se relationships brought out in the investigation report, nor have they disputed the nexus found between the Jigar group and Pabari group entities in terms of fund transfers between the entities/persons of the two groups in connection with the trading done in the scrip of Polytex and other scrips.
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/9/2018-19. 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.