sebi:WTM/SR/SEBI/EFD-DRA2/38/07/2017
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Facts / Headnote
Balaji Investments, Mr. Manaklal Panpaliya and Mr. Sanjay Rathi restrained from buying, selling or dealing in or accessing the securities market directly or indirectly and from associating with any intermediary registered with SEBI for a period of five years from the date of the Order, with immediate effect.
Provisions invoked
- s. 19
- s. 12A
Parties
- Balaji Investments
- Mr. Manaklal Panpaliya
- Mr. Sanjay Rathi
Holding
Balaji Investments, its proprietor Mr. Manaklal Panpaliya and Mr. Sanjay Rathi violated Sections 13, 16, 18A and 19 of the SCRA by dabba trading in equity and derivative contracts outside stock exchange platforms with cash settlement, and were restrained from the securities market and from associating with any SEBI-registered intermediary for five years.
Full text
Page 2 of 7 derivative contracts outside the trading platform of the Stock Exchanges or the trading terminals allotted to it, and, further, settled such trades by cash.
Page 3 of 7 wife’s account names Kavitha Sanjay Rathi from last 3 years. Also they blocked the deposit amount given at the time of opening our Firm. …me and Manaklal Panpaliya were doing Oil Mill business together, but after this incidence our partnership had broken and I work in a firm as a Manager for the last two years. I request you for your forgiveness in the matter…” Vide the said written submissions, Mr. Sanjay Rathi also requested SEBI to release their DP accounts and Brokerage amount of Balaji Investments.
Page 4 of 7 (2) All contracts in contravention of the provisions of sub-section (1) entered into after the date of notification issued thereunder shall be illegal. Contracts in derivative. 18A. Notwithstanding anything contained in any other law for the time being in force, contracts in derivative shall be legal and valid if such contracts are - (a) traded on a recognised stock exchange; (b) settled on the clearing house of the recognised stock exchange, in accordance with the rules and bye-laws of such stock exchange. Stock exchanges other than recognised stock exchanges prohibited. 19. (1) No person shall, except with the permission of the Central Government, organise or assist in organising or be a member of any stock exchange (other than a recognised stock exchange) for the purpose of assisting in, entering into or performing any contracts in securities. (2) This section shall come into force in any State or area on such date as the Central Government may, by notification in the Official Gazette, appoint.”
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Source: SecMarx — sebi:WTM/SR/SEBI/EFD-DRA2/38/07/2017. 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.