sebi:WTM/SR/SEBI/EFD/168/10/2015
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Facts / Headnote
Restrained Mr. Tushar S. Jhaveri from accessing the securities market and prohibited him from buying, selling or otherwise dealing in securities, directly or indirectly, for a period of One year.
Provisions invoked
- s. 11
Regulations
- Reg. 11
- Reg. 3
- Reg. 4(b)
- Reg. 3(a)
Parties
- Mr. Tushar S. Jhaveri
Holding
The Noticee Mr. Tushar S. Jhaveri executed circular trades with an intention to create artificial market in the scrip of Monalisa at ASE and BSE, thereby violating the PFUTP Regulations, and was restrained from accessing the securities market for a period of one year.
Full text
Page 2 of 9 SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003 to show cause as to why appropriate action should not be taken against him for the aforesaid alleged violations. However, the SCN issued to the Noticee was returned undelivered by the postal authorities. Subsequently, a reminder dated May 07, 2010 was issued by SEBI advising the Noticee to respond to the SCN. As the SCN could not be served on the Noticee, SEBI once again forwarded the SCN to the Noticee on February 12, 2014. The same was also returned undelivered. In view of this, a copy of the SCN was affixed at Flat No. A/11, Lavaniya Apartment, Lavaniya Society, Near Jaltharang Society, Vasna, Ahmedabad 380007 on June 23, 2014 and also uploaded the same on SEBI website under the head "Unserved Summons/Notices". Thereafter, vide separate letters dated December 03, 2014, SCN was also forwarded to the Brokers of the Noticee viz., Mr. Hemant Jhaveri, Rajesh Jhaveri Stock Brokers Private Limited, Amrut Securities Limited, SKSE Securities Limited and Galaxy Broking Limited for getting the same served on the Noticee. However, SCN could not be served on the Noticee by the brokers as the Noticee had shifted from the address available on record.
Page 3 of 9 PFUTP Regulations: 3. Prohibition of certain dealings in securities No person shall directly or indirectly— (a) buy, sell or otherwise deal in securities in a fraudulent manner;
Page 4 of 9 September 29, 2000 when the Noticee and the other connected entities traded in the scrip. 9. It is noted that investigation also revealed that the Noticee Mr. Tushar Jhaveri, Mr. Sanjay R. Shah, Orbit Securities Ltd., Classic Consultancy and Mr. Sanjiv Pravinchandra Shah are linked to each other as Mr. Sanjay R. Shah and Mr. Rajiv R Shah (Proprietor of Classic Consultancy) share the same address and there was substantial amount of share transfer from the Noticee to other entities. The details are as under: i. On September 21, 2000 and September 23, 2000, the Noticee transferred 3,00,000 shares of Monalisa to Mr. Sanjay R. Shah having address at E-101, Shubhalaxmi Tower, Opp. Sanghavi High School, Naranpura, Ahmedabad – 380 013. ii. On September 29, 2000 the Noticee transferred 91,000 shares of Monalisa to Classic Consultancy. Mr. Rajiv R. Shah is the proprietor of Classic Consultancy and Mr. Sanjay R. Shah and Classic Consultancy share the same address viz., E- 101, Shubhalaxmi Tower, Opp. Sanghavi High School, Naranpura, Ahmedabad – 380 013. iii. On September 27, 2000, the Noticee transferred 50,000 shares of Monalisa to Orbit Securities Ltd. iv. On October 10, 2000, Mr. Sanjay R Shah transferred 1,00,000 shares to Mr. Sanjiv P Shah.
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Source: SecMarx — sebi:WTM/SR/SEBI/EFD/168/10/2015. 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.