sebi:WTM/SM/IVD/24/2021-22
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Facts / Headnote
Charges held established against Noticee Nos. 2, 3 and 4; each restrained from accessing the securities market and from buying, selling or otherwise dealing in securities, directly or indirectly, or being associated with the securities market in any manner, for a period of 6 months, with existing holdings including mutual fund units frozen.
Provisions invoked
- s. 11
- s. 19
- s. 12A
Regulations
- Reg. 4
- Reg. 3
- Reg. 3(a)
Parties
- Mr. Sanjay Jalan (Noticee No. 2)
- Ms. Anila Jalan (Noticee No. 3)
- Ms. Rinku Jalan (Noticee No. 4)
Holding
Noticee Nos. 2, 3 and 4 acted as part of a common fraudulent scheme by off-market transfer of huge quantities of Le Waterina shares to suspected entities who used them to create artificial volume and inflate price, violating Section 12A of SEBI Act and Regulations 3 and 4 of PFUTP Regulations, 2003, and were each restrained from the securities market for 6 months.
Full text
Order in the matter of Le Waterina Resorts and Hotels Limited Page 1 of 33 WTM/SM/ IVD/ 24 /2021-22 BEFORE THE SECURITIES ANDEXCHANGE BOARD OF INDIA CORAM: S. K. MOHANTY, WHOLE TIME MEMBER
Order in the matter of Le Waterina Resorts and Hotels Limited Page 2 of 33 conduct of various entities, the Investigation Period was divided into pre- stock split period (October 01, 2010 to 03 July, 2011) and post-stock split period (04 July, 2011 to March 05, 2012). b) Mr. Sanjay Jalan (Noticee no. 2) was the promoter of the Company during the Investigation Period. Further, Noticee no. 3 (Ms. Anila Jalan) (mother of Noticee no. 2) and Noticee no. 4 (Ms. Rinku Jalan) (wife of Noticee no. 2) had transferred shares of the Company to various entities (for convenience “suspected entities”) through off-market transfers during both pre-stock split period and post stock split period. c) The suspected entities that received shares of Le Waterina in off-market transactions from the Noticees no. 3 and 4, had traded those shares in the market by executing trades among themselves and thereby created artificial volume in the scrip of the Company. d) Investigation further observed financial dealings between bank accounts of the Noticees no. 2 and 4. Further, it was observed that the bank account of the Noticee no. 4 was used by the Noticee no. 2 for his business dealings and therefore, the major financial dealings of the Noticee no. 4 were controlled by the Noticee no. 2. e) Investigation also observed that the Noticee no. 2 was connected to one of the suspected entities through fund transfers.
Order in the matter of Le Waterina Resorts and Hotels Limited Page 3 of 33 (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 2003 (hereinafter referred to as “the PFUTP Regulations, 2003”). Show Cause Notice and Reply
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Source: SecMarx — sebi:WTM/SM/IVD/24/2021-22. 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.