sebi:WTM/SR/SEBI/EFD-DRA-4/65/09/2017
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Facts / Headnote
Prohibition orders imposed: Krupa Sanjay Soni - 5 years; Krunal Gopaldas Rana - 4 years; Ashlesh Shah - 3 years from buying, selling or dealing in securities market, with prior debarment periods set off.
Provisions invoked
- s. 11B
- s. 11
- s. 11(4)
- s. 19
- s. 11(1)
- s. 12
- s. 12A
Regulations
- Reg. 3
- Reg. 3(a)
- Reg. 11(1)
Parties
- Ms. Krupa Sanjay Soni
- Mr. Krunal Gopaldas Rana
- Mr. Ashlesh Shah
Holding
The three Noticees, as part of the Krupa Soni group, were found to have acted in concert with the Malani promoter group to create artificial trading interest and volume in the illiquid scrip of Rotam Commercial Ltd (RCL), thereby facilitating the promoters' exit, in contravention of Section 12A of the SEBI Act and PFUTP Regulations. They were prohibited from accessing the securities market for 5, 4 and 3 years respectively, with set-off for periods already served.
Full text
Page 2 of 27 iv. Mr.Sanjay Soni and Ms.Krupa Soni also indulged in price manipulation in the scrip of RCL. v. On account of the above trading conducted by Krupa Soni group, the scrip of RCL attained momentum and at this juncture, other investors also started trading in the said scrip. vi. It is alleged that in the wake of the artificial interest created in the scrip, the promoter group (Malani group) could make an exit by selling their stake in the company. vii. Malani group sold a total of 2,47,125 shares (25.74% of the total share capital) during the period of investigation. viii. Out of 2.47 lakh shares sold by Malani group, 69,661 shares (approximately 28.19% of all the sales by the Malani group) were purchased by Krupa Soni group and the remaining shares were purchased by other entities. ix. Krupa Soni group were the counter-parties for more than 50% of the sales by Malani group of entities on two days (February 25, 2010 and April 06, 2010). x. The entities in the Krupa Soni group are connected/ related to each other. xi. One of the Krupa Soni group entities, J M Soni Consultancy received Rs.42 lakh from RCL during April - May 2010 (Rs.25 lakh on April 7, 2010 and Rs.17 lakh on May 7, 2010). xii. Further, some of the entities of Krupa Soni group provided funds to other entities of their group at various points of time for trading in the market. During April-May, 2010, the directors of RCL sold their entire stake in RCL and all the promoter group entities and their connec
Page 3 of 27 and (c) of SEBI Act read with Regulations 3(a), (b), (c), (d), 4(1) and 4 (2) (a), (d) and (e) of the SEBI (Prohibition of Fraudulent and Unfair Trade Practice relating to Securities Market) Regulations, 2003 (“PFUTP Regulations”).
Page 4 of 27 10. Pursuant to the Orders dated August 22, 2016 and December 08, 2016 passed by the Hon’ble SAT, an opportunity of personal hearing was granted to viz., Ashlesh Shah, Krupa Soni and Krunal Rana (collectively referred to as “the Noticees” and individually by their respective names) on March 23, 2017 before me. The details of the proceedings are as under: The authorized representative of Ashlesh Shah appeared before me and made oral
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Source: SecMarx — sebi:WTM/SR/SEBI/EFD-DRA-4/65/09/2017. 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.