Appeal No.99 of 2013. Case: Sil Leasing & Industrial Finance Pvt. Ltd. Vs Securities and Exchange Board of India. Securities and Exchange Board of India

Case NumberAppeal No.99 of 2013
CounselFor the Appellant: Dr. S. K. Jain, Practicing Company Secretary and For the Respondent: Mr. Mihir Mody, Advocate & Solicitor with Mr. Akhilesh Singh, Advocate
JudgesJog Singh, Member & Presiding Officer (Offg.) A.S. Lamba, Member
IssueSecurities and Exchange Board of India Act, 1992 - Section 15HA
Judgement DateJuly 02, 2013
CourtSecurities and Exchange Board of India


Jog Singh (Oral)

  1. With the consent of the parties, the matter is taken up for final hearing at the admission stage. Since a short question is involved in the Appeal, the same is being disposed of by the present order.

  2. The Appeal has been filed against the impugned Order dated March 14, 2013 passed by the adjudicating officer of the Securities and Exchange Board of India (Respondent-SEBI), under Section 15HA of the Securities and Exchange Board of India Act, 1992, hereinafter referred to as "the SEBI Act, 1992", holding the appellant guilty of violating regulations 3 (a), (b), (c), (d), 4(1), 4 (2) (a) & (e) of the Securities and Exchange Board of India (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003, and imposing a penalty of Rs.2.5 lac each on the Appellant along with others.

  3. Facts of the case, in brief, are that the Respondent-SEBI conducted an investigation into the buying, selling or dealing in the shares of T. Spiritual World Ltd. (for short the Company) listed on Bombay Stock Exchange (BSE) and Calcutta Stock Exchange, for the period from 12th July, 2004 to 4th February, 2005. The investigation revealed that on BSE the scrip of the company opened at Rs.27.85 on 12/7/2004 and closed at Rs.5.06 on 4/2/2005. During the investigation period, total 2,07,94,921 shares got traded with an average daily volume of 1,59,961 shares. Price of the scrip on BSE was Rs.1.65 on 6/11/2008. Investigation further revealed that a group of entities including, (i) Ms. Manjula Jain (Appellant in Appeal No.101/2013), (ii) Mr. Umesh Kumar Thaker (Appellant in Appeal No.98/2013), (iii) Jinprabhu Securities Pvt. Ltd. (Appellant in Appeal No.100/2013, and (iv) SIL Leasing & Industrial Finance Pvt. Ltd. (Appellant in Appeal No.99/2013) connected to the Company and to each other, in one way or the other, had dealt in the scrip of the company in a fraudulent and manipulative manner during the period under investigation. It created false and misleading appearance of trading, artificial volume, price increase and offloaded their shareholding in the market. The Respondent therefore initiated adjudication proceedings under the SEBI Act, 1992 and issued show-cause notice dated 31st January, 2012 to the Appellant, requiring him to show cause as to why an inquiry should not be held against the Appellant for the alleged violations. Thereafter an opportunity of personal hearing was also given to the...

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