sebi:WTM/TCN/147/IVD3/JAN/09
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Facts / Headnote
Shri Mahendra A. Shah held to have violated Regulation 4(a), (b) and (d) of SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 1995 and prohibited from associating with any corporate body from buying, selling or dealing in securities, directly or indirectly for a period of three years with immediate effect.
Provisions invoked
- s. 11
- s. 19
Regulations
- Reg. 11
- Reg. 4(a)
- Reg. 3
Parties
- Shri Mahendra A. Shah
Holding
Shri Mahendra A. Shah, acting through connected entities M/s. Harvic Management Services Ltd., M/s. Mayekar Investments Pvt. Ltd. and M/s. Rajesh N. Jhaveri, created a false and misleading appearance and artificial volume and price rise in the scrip of SCL in violation of Regulation 4(a), (b) and (d) of the 1995 Regulations, and was therefore prohibited from associating with any corporate body from buying, selling or dealing in securities directly or indirectly for three years.
Full text
Page 2 of 9 2. In view of the above, Securities and Exchange Board of India (hereinafter referred to as “SEBI”) vide order dated October 22, 2001 initiated investigations into the buying, selling and dealing in the scrip of SCL during the period October 1999 to March 2000.
Page 3 of 9 and the gross quantity traded by Shri Mahendra A. Shah comes 19.61 lakhs resulting in approx. 19% of the total quantity traded on the exchange.
Page 4 of 9 share certificate were split into certificates of marketable lot sometimes in October 1999. He has denied the association with any of the entities mentioned in the show cause notice at page 6 and 7 of the show cause notice dated October 26, 2003 including M/s Harvic Management Services Ltd and M/s Mayekar Investments Pvt. Ltd. He also contended that the total shares sold by those entities were 1,46,000 shares which hardly formed any significant percentage of the total equity shares of the company. He also denies his association with any of the buyers (10,000 shares and above) alleged to be connected with him. He has stated that he was interested in the business of the company so he wanted to join the company by buying shares from original subscribers. For this, he approached Shri Satish R Shah in July- August 1999 and bought shares held by him and his family members. He also denies that he was the largest seller in the scrip of Sawaca Communications Ltd and that he resorted to creating artificial volume through Harvic Management or Mayekar Investment or otherwise. He also denies that he off-loaded shares through M/s. Rajesh N Jhaveri or others. He denied that 19% of the total quantity of the shares of the company traded by him could have any substantial impact on the price of the scrip. He has denied that M/s. Rajesh N JHaveri and M/s. Shrikant G. Mantri has done trades for him but accepts that Shri Rajesh N. Jhaveri was allotted share on preferential allotmen
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Source: SecMarx — sebi:WTM/TCN/147/IVD3/JAN/09. 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.