before the adjudicating officer securities and exchange ... · of wppcl and into the possible...

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BEFORE THE ADJUDICATING OFFICER SECURITIES AND EXCHANGE BOARD OF INDIA

[ADJUDICATION ORDER NO. EAD-2/DSR/RG/PU/345-403/2015]

______________________________________________________________________________

UNDER SECTION 15-I OF SECURITIES AND EXCHANGE BOARD OF INDIA

ACT, 1992 READ WITH RULE 5 OF SEBI (PROCEDURE FOR HOLDING INQUIRY

AND IMPOSING PENALTIES BY ADJUDICATING OFFICER) RULES, 1995.

In respect of

1. Shri Santosh Deshmal Oswal [PAN: AAAPO2421P]

2. Shri Pradeepkumar Jashbhai Patel [PAN: AAPPP2610J]

3. Shri Amar Premchand Walmiki [PAN: AAUPW9971A]

4. Shri Bharat Shantilal Thakkar [PAN: AAZPT9542R]

5. Ms. Ragini Bipinbhai Thakkar [PAN: ABLPT5138N]

6. Shri Bipin Jayant Thakkar [PAN: ABYPT4984H]

7. Shri Navneetlal Jeevanlal Gandhi [PAN: ACTPG8728N]

8. Shri Rajesh Ravinarayan Hati [PAN: ACVPH5913N]

9. Shri Chiraj Rajnikant Jariwala [PAN: AFMPJ7543L]

10. Shri Kishore Chauhan [PAN: AFPPC9703G]

11. Shri Tushar Rameshbhai Patel [PAN:AFVPP7625L]

12. Shri Shashikant Keshavlal Shah [PAN: AFZPS9107A]

13. Shri Samir Sureshbhai Shah [PAN: AGEPS0157L]

14. Shri Manoj Bhandari [PAN: AGQPB7879L]

15. Shri Samirkumar Kanubhai Patel [PAN: AGXPP0488N]

16. Shri Santosh Vishram Ghadshi [PAN: AHNPG0002C]

17. Shri Jignesh C. Shah [PAN: AIPPS9125H]

18. Shri Shalin Kiritkumar Parikh [PAN: AJAPP5421B]

19. Shri Mayank Navnitbhai Gandhi [PAN: AKCPG0246Q]

20. Ms. Aditi M Gandhi [PAN: AKCPG0247R]

21. Shri Avinash Bothra [PAN: AKFPB9350B]

22. Shri Bhavesh Pabari [PAN: AKGPP8679N]

23. Ms. Rekha Bhandari [PAN: ALHPB9175D]

24. Shri Prem Mohanlal Parikh [PAN: ALHPP3489N]

25. Shri Sunil Bhandari [PAN: ALZPB5747M]

26. Shri Nareshbhai Devabhai Patel [PAN: AMFPP7028N]

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27. Shri Kaushik Rajnikant Mehta [PAN: ANNPM6298A]

28. Shri Hemant Madhusudan Sheth [PAN: ANOPS8607E]

29. Shri Ashokkumar Bhikhalal Parmar [PAN: AOJPP8746B]

30. Ms. Manisha Navneetlal Gandhi [PAN: AOSPG7834A]

31. Pandya Yaminiben M [PAN: APGPP6166F]

32. Pandya Hardik M [PAN: ARJPP6330Q]

33. Shri Bharatkumar Baldevbhai Parmar [PAN: ARTPP9101B]

34. Shri Laxman Dhirubhai Parmar [PAN: ASNPP5380P]

35. Ms. Shobhnaben R Parmar [PAN: ASNPP5381N]

36. Shri Rameshbhai V Parmar [PAN: ASQPP5072M]

37. Ms. Amisha Samir Patel [PAN: AUVPP1737C]

38. Shri Vipul Hiralal Shah [PAN: AZCPS9537P]

39. Ms. Dipika Dinesh Kankaria [PAN: AZGPK7183F]

40. Shri Shreedhar Yellaiah Kodam [PAN: AZGPK9995H ]

41. Shri Ankit Sanchaniya [PAN: BLNPS3316L]

42. Shri Vivek Kishanpal Samant [PAN: BRSPS0294N]

43. Anand Finstock Services Limited [PAN: AABCA6413F]

44. Shri Vishal Pare [PAN: AOVPP9130K]

45. Shri Pannalal Ukaram Prajapati [PAN: AQIPP7482K]

46. Ms. Vaishali Ashvinbhai Parmar [PAN: BFGPP8793B]

47. Samir Sureshbhai Shah (HUF) [PAN: AAHHS5122G]

48. Spectrum Chemicals Private Limited [PAN: AAICS2382L]

49. Ms. Janaki Bipin Thakkar [PAN: ACUPT4245J]

50. Shri Manish Suresh Joshi [PAN: AFTPJ5897A]

51. Shri Rakesh Gokulbhai Patel [PAN: AGPPP7771C]

52. Shri Bipin Kumar Gandhi [PAN: AJHPG6989J]

53. Shri Anand Kalu Marathe [PAN: AKWPM0699M]

54. Shri Dhirubhai Antolbhai Parmar [PAN: ASNPP5307N]

55. Ms. Mala Hemant Sheth [PAN: AZXPS0694J]

56. Shri Bhupesh Rathod [PAN: AACPR3785K]

57. Shri Jayvishal Dilipsingh Barot [PAN: ALVPB3463C]

58. Arcadia Share & Stock Brokers Pvt. Ltd. [PAN: AAACA4562G]

In the matter of

WELL PACK PAPERS & CONTAINERS LIMITED

____________________________________________________________________________________

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1. Securities and Exchange Board of India (hereinafter referred to as ‘SEBI’), had

pursuant to the detection of a huge rise in the traded volumes and/or price of the

shares of Well Pack Papers & Containers Limited (hereinafter referred to as

'WPPCL/Company'), a company listed at the Bombay Stock Exchange limited (BSE),

conducted an investigation into the alleged irregularity in the trading in the shares

of WPPCL and into the possible violation of the provisions of the Securities and

Exchange Board of India Act, 1992 (hereinafter referred to as the 'Act') and various

Rules and Regulations made there under during the period from November 28, 2008

to March 12, 2010 and March 15, 2010 to June 30, 2010. It was observed that during

the pre bonus and split period i.e. from November 28, 2008 to March 12, 2010 the

price of the scrip unusually increased from `9.54 to `499.45 and the daily high and

low traded volume was 1600 shares to 6,05,201 shares. Also, during the post bonus

and split period i.e. from March 15, 2010 to June 30, 2010 the price of the scrip

unusually increased from `23.20 to `73.90 and the daily high and low traded

volume was 16,82,856 shares to 58,49,194 shares.

2. SEBI vide its interim Order dated February 2, 2011, had restrained 39

persons/entities from accessing the securities market and further, had prohibited

from buying, selling or dealing in securities in any manner whatsoever, till further

directions, in various scrips including WPPCL. The said order was later confirmed

by SEBI vide its order dated July 8, 2011.

3. The investigation, inter alia, revealed that a group of entities namely, 1. Shri Santosh

Deshmal Oswal, 2. Shri Pradeepkumar Jashbhai Patel, 3. Shri Amar Premchand

Walmiki, 4. Shri Bharat Shantilal Thakkar, 5. Ms. Ragini Bipinbhai Thakkar, 6. Shri

Bipin Jayant Thakkar, 7. Shri Navneetlal Jeevanlal Gandhi, 8. Shri Rajesh

Ravinarayan Hati, 9. Shri Chraj Rajnikant Jariwala, 10. Shri Kishore Chauhan, 11.

Shri Tushar Rameshbhai Patel, 12. Shri Shashikant Keshavlal Shah, 13. Shri Samir

Sureshbhai Shah, 14. Shri Manoj Bhandari, 15. Shri Samirkumar Kanubhai Patel, 16.

Shri Santosh Vishram Ghadshi, 17. Shri Jignesh C. Shah, 18. Shri Shalin Kirtikumar

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Parikh, 19. Shri Mayank Navnitbhai Gandhi, 20. Ms. Aditi M Gandhi, 21. Shri

Avinash Bothra, 22. Shri Bhavesh Pabari, 23. Ms. Rekha Bhandari, 24. Shri Prem

Mohanlal Parikh, 25. Shri Sunil Bhandari, 26. Shri Nareshbhai Devbhai Patel, 27. Shri

Kaushik Rajnikant Mehta, 28. Shri Hemant Madhusudan Sheth, 29. Shri

Ashokkumar Bhikhalal Parmar, 30. Ms. Manisha Navneetlal Gandhi, 31. Pandya

Yaminiben M, 32. Pandya Hardik M, 33. Shri Bharatkumar Baldevbhai Parmar, 34.

Shri Laxman Dhirubhai Parmar, 35. Ms. Shobhnaben R Parmar, 36. Shri Rameshbhai

V Parmar, 37. Ms. Amisha Samir Patel, 38. Shri Vipul Hiralal Shah, 39. Ms. Dipika

Dinesh Kankaria, 40. Shri Shreedhar Yellaiah Kodam, 41. Shri Ankit Sanchaniya, 42.

Shri Vivek Kishanpal Samant, 43. Anand Finstock Services Limited, 44. Shri Vishal

Pare, 45. Shri Pannalal Ukaram Prajapati, 46. Ms. Vaishali Ashvinbhai Parmar, 47.

Samir Sureshbhai Shah (HUF), 48. Spectrum Chemicals Private Limited, 49. Ms.

Janaki Bipin Thakkar, 50. Shri Manish Suresh Joshi, 51. Shri Rakesh Gokulbhai Patel,

52. Shri Bipin Kumar Gandhi, 53. Shri Anand Kalu Marathe, 54. Shri Dhirubhai

Antolbhai Parmar, 55. Ms. Mala Hemant Sheth, 56. Shri Bhupesh Rathod and 57.

Shri Jayvishal Dilipsingh Barot (hereinafter collectively referred to as the Noticees),

connected to each other by one way or the other, had dealt in the scrip of WPPCL

through multiple brokers in a fraudulent and manipulative manner, without real

change in ownership of shares, by indulging in number of synchronized trades and

heavily traded amongst themselves thereby, creating artificial volumes and price

rise in the scrip. The Noticees were also observed to have done off-market

transactions among themselves for the purpose of meeting the settlement

obligations of one another.

4. It was further observed that certain Noticees had also indulged in trades which were

self trades in nature, while trading on BSE, through multiple brokers, one of them

being Arcadia Share & Stock brokers Private Limited (hereinafter referred to as

Arcadia), a registered intermediary with SEBI thereby, creating artificial volume

which gave a false and misleading appearance of trading in the scrip of WPPCL on

BSE.

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5. SEBI has, therefore, initiated adjudication proceedings against the Noticees for the

alleged violation of Regulation 3 (a), (b), (c), (d), 4 (1) and 4 (2) (a), (b), (e) & (g) of the

SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities

Market) Regulations, 2003 (hereinafter referred to as the PFUTP Regulations) and

against Arcadia for the alleged violation of the provisions of Clause A (1), (2) & (3)

of the Code of Conduct as specified under Schedule II of the SEBI (Stock Brokers and

Sub-Brokers) Regulations, 1992 (herein after referred to as the Broker Regulations)

read with Regulation 7 of the Broker Regulations.

Appointment of Adjudicating Officer

6. I have been appointed as the Adjudicating Officer, in the place of the previous

Adjudicating Officer, vide order dated August 29, 2013 under Section 15 I of the Act

read with Rule 3 of the SEBI (Procedure for Holding Inquiry and Imposing Penalties

by Adjudicating Officer) Rules, 1995 (hereinafter referred to as 'Rules') to inquire

into and adjudge under Section 15 HA of the Act against the Noticees for the alleged

violation of the provisions of PFUTP Regulations and under Section 15 HB of the Act

against Arcadia for the alleged violation of the Broker Regulations.

Show Cause Notice, Reply and Personal Hearing

7. All the Noticees were issued a common show cause notice (hereinafter referred to

as 'SCN') dated November 20, 2013 in terms of Rule 4(1) of the Rules to show cause

as to why an inquiry should not be held and penalty should not be imposed on them

for the aforesaid violations. The SCNs were sent by Speed Post Ack. Due and were

duly delivered to the Noticees except in the case of Shri Rajesh Ravinarayan Hati,

Ms. Rekha Bhandari, Shri Sunil Bhandari, Anand Finstock Services Limited, Shri

Vishal Pare, Shri Pannalal Ukaram Prajapati, Spectrum Chemicals Private Limited

and Shri Bipin Kumar Gandhi as the same were returned undelivered. In view of

the same, vide letter dated March 04, 2014, the SCNs were affixed at the last known

address/s of the said Noticees. However, Ms. Rekha Bhandari personally collected

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the SCN on behalf of herself and also on behalf of Shri Sunil Bhandari and has also

acknowledged the same. With respect to Shri Vishal Pare, the SCN sent for affixture

could not be affixed since the entity could not be traced at the said address.

However, one Mr. Raja Ratan Bhora (Authorized representative) collected the said

SCN on behalf of Shri Vishal Pare during the hearing conducted on May 05, 2014.

8. Vide letter dated December 02, 2013, one Ms. Rupal K. Chauhan, wife of Shri

Kishore Chauhan informed that the said Noticee had passed away on May 29, 2013

and enclosed a copy of the certified death certificate of Shri Kishore Chauhan as

issued by the Department of Health and Family Welfare, Government of Gujarat, in

support thereof. In view of the same, the adjudication proceedings initiated against

Shri Kishore Chauhan stand abated. However, I shall examine the role of Shri

Kishore Chauhan for the limited purpose of examining the role and findings against

the other Noticees in the matter.

9. Details of the replies received from the Noticees and the hearings conducted are

mentioned at Annexure 'A' (Page 1 to 11) to this Order.

10. In view of the above, with respect to Shri Santosh Deshmal Oswal, Shri Rajesh

Ravinarayan Hati, Shri Vipul Hiralal Shah, Shri Shreedhar Yellaiah Kodam, Anand

Finstock Services Limited, Shri Pannalal Ukaram Prajapati, Spectrum Chemicals

Private Limited and Shri Bipin Kumar Gandhi. I note that the said Noticees have

neither filed any replies nor availed the opportunity of personal hearing granted to

them in the matter. I note that the said Noticees have been granted sufficient time to

file their replies in the matter as the SCN in the present case was issued on

November 20, 2013 i.e. more than one year ago. Therefore, I am proceeding further

against the said Noticees on the basis of material available on record in the matter.

https://www.sebi.gov.in/sebi_data/commondocs/WellpackPapers_A_p.pdf

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Consideration of Issues, Evidence and Findings

11. I have carefully perused the charges leveled against the Noticees in the SCN, written

submissions made by them and all the documents available on record. In the instant

matter, the following issues arise for consideration and determination:

a. Whether Noticees (excluding Shri Kishore Chuahan) have violated

Regulation 3 (a), (b), (c), (d), 4 (1) and 4 (2) (a), (b), (e) & (g) of the PFUTP

Regulations?

b. Whether Arcadia has violated Clause A (1), (2) & (3) of the Code of

Conduct specified under Schedule II read with Regulation 7 of the

Broker Regulations?

c. Do the violations, if any, on the part of the Noticees attract monetary

penalty under Section 15HA and 15HB of the Act?

d. If so, what should be the quantum of monetary penalty that can be

imposed on the Noticees taking into consideration the factors as

mentioned under Section 15 J of the Act?

12. Before proceeding forward, I would like to refer to the relevant provision of the

PFUTP Regulations and the Broker Regulations, which read as under:

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; (b) use or employ, in connection with issue, purchase or sale of any security listed or proposed to be listed in a recognized stock exchange, any manipulative or deceptive device or contrivance in contravention of the provisions of the Act or the rules or the regulations made there under; (c) employ any device, scheme or artifice to defraud in connection with dealing in or issue of securities which are listed or proposed to be listed on a recognized stock exchange;

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(d) engage in any act, practice, course of business which operates or would operate as fraud or deceit upon any person in connection with any dealing in or issue of securities which are listed or proposed to be listed on a recognized stock exchange in contravention of the provisions of the Act or the rules and the regulations made there under.

4. Prohibition of manipulative, fraudulent and unfair trade practices (1) Without prejudice to the provisions of regulation 3, no person shall indulge in a fraudulent or an unfair trade practice in securities. (2) Dealing in securities shall be deemed to be a fraudulent or an unfair trade practice if it involves fraud and may include all or any of the following, namely:— (a) indulging in an act which creates false or misleading appearance of trading in the securities market; (b) dealing in a security not intended to effect transfer of beneficial ownership but intended to operate only as a device to inflate, depress or cause fluctuations in the price of such security for wrongful gain or avoidance of loss; (c)............. (d)............. (e) any act or omission amounting to manipulation of the price of a scrip (g) entering into a transaction in securities without intention of performing it or without intention of change of ownership of such security;

Broker Regulations

Stock brokers to abide by Code of Conduct.

7. The stock broker holding a certificate shall at all times abide by the Code of Conduct as

specified in Schedule II.

SCHEDULE II

CODE OF CONDUCT FOR STOCK BROKERS

[Regulation 7]

A. General.

(1) Integrity: A stock-broker, shall maintain high standards of integrity, promptitude

and fairness in the conduct of all his business.

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(2) Exercise of due skill and care: A stock-broker shall act with due skill, care and

diligence in the conduct of all his business.

(3) Manipulation: A stock-broker shall not indulge in manipulative, fraudulent or

deceptive transactions or schemes or spread rumours with a view to distorting market

equilibrium or making personal gains.

13. I find from the SCN that WPPCL is a company listed on the BSE. On analysis of the

trading activity in the scrip of WPPCL on BSE for the period from November 28,

2008 to March 12, 2010, it was noticed that a group of entities namely, Shri Santosh

Deshmal Oswal, Samir Sureshbhai Shah (HUF), Spectrum Chemicals Pvt. Ltd, Shri

Pradeepkumar Jashbhai Patel, Shri Amar Premchand Walmiki, Shri Bharat Shantilal

Thakkar, Ms. Ragini Bipinbhai Thakkar, Shri Bipin Jayant Thaker, Shri Navneetlal

Jeevanlal Gandhi, Ms. Janaki Bipin Thakkar, Shri Rajesh Ravinarayan Hati, Shri

Chirag Rajnikant Jariwala, Shri Kishore Chauhan, Shri Manish Suresh Joshi, Shri

Tushar Rameshbhai Patel, Shri Shashikant Keshavlal Shah, Shri Samir Sureshbhai

Shah, Shri Rakesh Gokulbhai Patel, Shri Manoj Bhandari, Shri Samirkumar

Kanubhai Patel, Shri Santosh Vishram Ghadshi, Shri Jignesh C. Shah, Shri Shalin

Kiritkumar Parikh, Shri Bipinkumar Gandhi, Shri Mayank Navnitbhai Gandhi, Ms.

Aditi M Gandhi, Avinash Bothra, Shri Bhavesh Pabari, Shri Anand Kalu Marathe,

Ms. Rekha Bhandari, Shri Prem Mohanlal Parikh, Shri Sunil Bhandari, Shri

Nareshbhai Devabhai Patel, Shri Kaushik Rajnikant Mehta, Shri Hemant

Madhusudan Sheth, Shri Ashokkumar Bhikhalal Parmar, Ms. Manisha Navneetlal

Gandhi, Pandya Yaminiben M, Pandya Hardik M, Shri Bharatkumar Baldevbhai

Parmar, Shri Dhirubhai Antolbhai Parmar, Shri Laxman Dhirubhai Parmar, Ms.

Shobhnaben R Parmar, Shri Rameshbhai V Parmar, Ms. Amisha Samir Patel, Shri

Vipul Hiralal Shah, Ms. Dipika Dinesh Kankaria, Shri Shreedhar Yellaiah Kodam,

Ms. Mala Hemant Sheth, Shri Ankit Sanchaniya and Shri Vivek Kishanpal Samant

(hereinafter referred to as the Walmiki Shah Group) were connected to each other

and had traded heavily in the scrip of WPPCL through multiple brokers. The

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relationship between the 51 Walmiki Shah Group entities and their connection with

the each other is detailed as under:

Client Name

KYC Relation Fund Movem

ent

Share movement

through off market

Client Name

KYC Relation Fund Moveme

nt

Share moveme

nt through

off market

1.Santosh Deshmal Oswal

With sl. no.39, 17, 2, 5, 11, 19, 21, 38, 43, 44.

27.Avinash Bothra

Sl. no. 47 is his wife. Sl. no. 32 has offered him Rs.10,000/- per month for lending its trading a/c.

With sl. no. 17, 43, 44, 47.

2.Samir Sureshbhai Shah (HUF)

Sl. no. 4, 7, 8, 10, 20, 22, 23, 25, 26, 33, 36, 38, 41, 42, 43, 44, 45, 37 are its clients. Sl. no. 1, 5, 19, 21, 24, 32, 39 & 29 are Paras Chaplot friend and he came in touch with Paras Chaplot as a share broker.

With sl. no.41, 39, 18, 37, 29, 36, 19, 45, 17, 38, 42, 5, 43, 25,

With sl. no. 39, 2, 1, 17, 26, 33, 44, 45.

28.Bhavesh Pabari

Sl. no. 6 is his uncle & sl. no. 51 is his brother in law. Sl. no. 31 is cousin of sl. no.28. Sl. no. 28 & 35 both directors of Rajnandi Yarns Pvt. Ltd. Share common Tel. no. with sl. no. 50, 51, 8. BR* with sl. no. 8, 12, 13, 31, 35, 49, 50.

With sl. no. 31, 35, 6, 8, 50, 51, 24, 5, 19, 39.

3.Spectrum Chemicals Pvt. Ltd

Have common address as that of Khodiyar Industry (Ramniklal Patel). Ramniklal Patel has the same address as that of sl. no. 24, who has share and fund movement with sl. no. 28.

29.Anand Kalu Marathe

Sl. no. 5 is witness in nomination form.

With sl. no. 31, 39, 5.

4.Pradeepkumar Jashbhai Patel

With sl. no. 17, 5, 20, 33, 36. 30.Rekha

Bhandari

Sl. no. 30 is wife of sl. no. 32.

With sl. no. 5, 39.

With sl. no. 5.

5.Amar Premchand Walmiki

With sl. no.19, 29, 32, 39, 28, 17, 21, 30, 38.

With sl. no.28, 1, 4, 9, 15, 17, 18, 19, 21, 25, 26, 28, 37, 40, 41, 44.

31.Prem Mohanlal Parikh

Sl. no. 31 is cousin of sl. no.28. Common email with sl. 50, 31 & 51. Sl. no. 35 is nominee of sl. no.31. BR* with sl. no. 6, 8, 12, 13, 28, 35, 50, 51.

With sl. no. 28, 35, 13.

With sl. no. 28, 35, 13, 6, 8, 35, 50, 51.

6.Bharat Shantilal Thakkar

Sl. no. 28 is his nephew. Same address with sl. no.28. Sl. no. 28 is his nominee. Joint a/c with sl. no. 28. BR* with sl. no. 8, 12, 13, 31, 35, 50, 51

With sl. no. 28, 31, 50.

With sl. no. 19, 28.

32.Sunil Bhandari

Sl. no. 32 is the husband of sl. no. 30.

With sl. no 5, 21.

7.Ragini Same address as sl.no. With sl. 33.Naresh Sl. no. 9 has off With sl. With sl.

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Bipinbhai Thakkar

10 who was introduced by sl. no. 17. Introduced by sl. no. 39 –as per KYC submitted by VSE Stock Services Ltd.

no. 17, 26, 38.

bhai Devabhai Patel

market transaction with sl. no. 37, sl. no. 37 has off-market transaction with sl. no. 5 & 17.

no. 17, 36, 18.

no. 2, 4, 9, 17.

8.Bipin Jayant Thaker

Same Tel. no. with sl. no. 28. BR* with sl. no. 6, 12, 13, 28, 31, 35, 50, 51.

With sl. no. 28..

With sl. no. 12, 28, 31, 35.

34.Kaushik Rajnikant Mehta

Sl. no. 46 is linked to sl. no. 28 and sl.no. 17.


With sl. no 28, 17, 40, 46.

9.Navneetlal Jeevanlal Gandhi

Introduced by sl. no. 39 –as per KYC submitted by VSE Stock Services Ltd.

With sl. no.5, 17, 33, 37, 44.

35.Hemant Madhusudan Sheth

Sl. no. 28 & 35 both directors of Rajnandi Yarns Pvt. Ltd. Same email with sl. no. 51. BR* with 6, 31, 50, 51, 8, 12, 13, & sl. no. 49 is his wife.

With sl. no. 28, 31, 13.

With sl. no. 28, 31, 13, 49, 50, 51, 8, 39.

10.Janaki Bipin Thakkar

Introduced by sl. no. 17 –as per KYC submitted by Active Finstock.

36.Ashokkumar Bhikhalal Parmar

Introduced by sl. no. 17 –as per KYC submitted by VSE Stock Services Ltd. Sl.no. 36 knows sl. no. 17 who is a stock broker. Sl. no. 42, 43, 44, 41 are his relatives and he has lent his demat a/c for Rs.6,000/- to S. no. 17 for third party use on the instruction of Mr. Paras Chaplot.

With sl. no.17, 39, 18.

With sl. no.17, 4, 11, 38, 39, 43, 44, 45.

11.Rajesh Ravinarayan Hati

With sl. no.39, 5, 1, 21, 36, 38, 45, 46, 50, 51,

37.Manisha Navneetlal Gandhi

Sl. no. 5 has off-market transaction with sl. no. 28 and fund movement with sl. no. 39.

With sl. no. 5, 17, 9.

12.Chirag Rajnikant Jariwala

Same Tel. no. with sl.no.28. Sl. no. 28 is his uncle. BR* with sl. no. 6, 8, 13, 28, 35, 50, 51.


With sl. no. 8.

38.Pandya Yaminiben M

Same address as that of sl. no. 39. Sl. no. 39 is his relative and he is known to Sl. no. 17.

With sl. no. 39, 17, 51, 21, 18.

With sl. no. 42, 1, 7, 11, 17, 36, 39, 41, 42, 43, 44.

13.Kishore Chauhan

Join a/c with sl. no. 28. Sl. no. 28 & 35 are witness for demat a/c. BR* with sl. no. 6, 8, 12, 28, 31, 35, 50.

With sl. no. 28, 31, 35.

With sl. no. 28, 31, 35, 51.

39.Pandya Hardik M

Having common tel. no. as that of sl. no. 17. From KYC submitted by VSE Stock Services Limited, it is observed that sl. No. 17 is the promoter of M/s. Samir Shah & Co. and Sl.no.39 is one of its employees. Sl. no. 38 is his relative and he is known to Sl. no. 17.

With sl. no. 19, 30, 5, 17, 29, 18, 38, 21, 2, 30, 25.

With sl. no. 28, 35, 17, 36, 38, 44, 1, 11, 16, 18, 21,

14.Manish Suresh Joshi

Introduced by Narendra Ganatra –as per KYC submitted by Ford

40.Bharatkumar Baldevbh

Has common tel. no. with sl. no. 44.

With sl. no.15, 5, 17, 18.

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Brothers Capital Services Ltd.

ai Parmar

15.Tushar Rameshbhai Patel

With sl. no.5, 17, 21, 40.

41.Dhirubhai Antolbhai Parmar

Introduced by sl. no. 39.

With sl. no.17,

With sl. no.5, 17, 38, 43, 44,

16.Shashikant Keshavlal Shah

Sl. no. 46 is witness as per KYC furnished by Gogia Capital Services Ltd.

With sl. no.17, 18, 39,

42.Laxman Dhirubhai Parmar

Having common tel. no. as that of sl. no. 17- KYC document submitted by Shah Investor’s Home Limited. Sl. no. 36, 43, 44, 41 are his relatives & sl. no. 17 is a stock broker and his advisor and well wisher. It may also be noted that he lent his demat a/c for a sum of Rs.6,000/- per month for third party use upon the instruction of Sl. no. 17 for the third party use by Mr. Paras Chaplot.

With sl. no.39, 17.

With sl. no.17, 38, 18, 26, 41.

17.Samir Sureshbhai Shah

Sl. no. 9 is his father. Sl. no. 4, 7, 8, 10, 20, 22, 23, 25, 26, 33, 36, 38, 41, 42, 43, 44, 45, 37 are its clients. Sl. no. 1, 5, 19, 21, 24, 32, 39 & 29 are Paras Chaplot friend and he came in touch with Paras Chaplot as a share broker.

With sl. no.5, 17, 39, 26, 43, 1, 2, 4, 7, 9, 15, 18, 20, 21, 23, 25, 27, 33, 36, 37, 38, 39, 40, 41, 42, 43, 44, 45, 47,

43.Shobhnaben R Parmar

Sl. no. 43 has the same address as that of sl. no. 44. Sl. no. 36, 42, 44, 41 are his relatives & he knows sl. no. 17.

With sl. no.17, 18.

With sl. no.5, 17, 1, 27, 36, 38, 41, 44, 47.

18.Rakesh Gokulbhai Patel

With sl. no. 33, 39, 17.

With sl. no.17, 5, 16, 20, 22, 26, 39, 40, 42, 45, 47.

44.Rameshbhai V Parmar

Having common tel. no. with sl. no. 17. Sl. no. 42, 43, 41 are his relatives & he knows sl. no. 17.

With sl. no. 18, 17

With sl. no.5, 38, 39, 1, 2, 9, 17, 27, 36, 41, 43,

19.Manoj Bhandari

Sl. no. 32 is his office staff.

With sl. no. 39, 5, 17,

With sl. no. 28, 5, 50, 13, 1, 6, 20, 45,

45.Amisha Samir Patel

With sl. no. 17,

With sl. no. 17, 2, 11, 19, 36, 18.

20.Samirkumar Kanubhai Patel

With sl. no.17.

With sl. no.2, 4, 17, 18, 19.

46.Vipul Hiralal Shah

Sl. No. 34 has off-market transaction with sl. No. 28.

With sl. No. 34.

With sl. no.28, 11, 17, 48.

21.Santosh Vishram Ghadshi

With sl. no. 39, 5, 15, 17.

With sl. no.5, 17, 1, 48, 11, 15.

47.Dipika Dinesh Kankaria

Sl. no. 27 is his husband. Sl. no. 32 offered him Rs.10,000/- per month for lending its trading account.

With sl. No. 33, 39, 17.

With sl. No. 17, 43, 18, 27,

of 76

22.Jignesh C. Shah

Sl. No. 39 is the introducer of Sl. no. 22. Sl. no. 39 has off market transactions with sl. no. 28 and 35.

With sl. no.18. 48.Shreed

har Yellaiah Kodam

With sl. No. 21.

23.Shalin Kiritkumar Parikh

Introduced by sl. no. 17 –as per KYC submitted by VSE Stock Services Ltd. Sl. no. 17 has off market transactions with sl. no. 5 & 28.

With sl. no. 17.

49.Mala Hemant Sheth

Sl. no. 49 is the wife of sl. no. 35.


With sl. no. 35.

24.Bipinkumar Gandhi

With sl. no. 28.

50.Ankit Sanchaniya

Same Tel. no. with sl. no. 31 and also shares Tel. no. with sl. no. 28 who is the nominee for his a/c. BR* with sl. no.6, 8, 12, 13, 28, 31, 35, 51.


With sl. no. 28, 31, 35, 12, 51, 11.

25.Mayank Navnitbhai Gandhi

Same address with sl. no. 26. Sl. no. 17 is his relative. Sl. no. 25 & 26 have joint bank a/c.

With sl. no. 17, 18, 39.

With sl. no. 5, 17, 26.

51.Vivek Kishanpal Samant

Sl. no. 28 is the brother in law & shares common Tel. no. & sl.no. 28 is the nominee of sl. no. 28 for trading a/c & bank a/c. Shares email with sl. no. 35. Shares email with sl. no. 31.

With sl. no. 35.

With sl. no. 28, 35, 12, 13, 31, 50, 11.

26.Aditi M Gandhi

Sl. no. 17 is his relative. Sl. no. 25 & 26 have joint bank a/c.

With sl. no. 29.

With sl. no.5, 17, 2, 7, 42, 5, 18, 25, 26.

14. From the trade log analysis, I find that 51 Walmiki Shah Group entities dealing

through multiple brokers purchased 26436837 shares accounting for 52.78 % of the

total traded volume and sold 18298802 shares accounting for 36.54 % of the total

traded volume during the period under investigation. In addition, it was revealed

that the Walmiki Shah Group had indulged in off-market transfer of 2,91,86,301

shares of WPPCL amongst themselves during the relevant period. I also note that

the connection between the group is established from these off-market transfers

among the group.

15. I note that out of the total purchase and sale of 26436837 shares and 18298802 shares,

respectively, by the 51 Walmiki Shah Group entities, 50 Walmiki Shah Group

of 76

entities traded for 9866868 shares (i.e. 19.70% of the market volume) accounting for

37.32 % of the total purchase by the group and 53.92% of the total sale of the group,

within themselves.

16. Further I note that, out of the total trading of 9866868 shares within the group

entities, for 4599077 shares accounting for 9.18% of the market volume, the buy and

sale orders were placed within one minute time difference. I note that 4599077

shares constituted for 17.39% of the total purchase of Walmiki Shah Group entities

and 25.13% of the total sale of the Walmiki Shah Group entities. Out of 4599077

shares, I also note that 721545 shares accounting for 1.44% of the total market

volume the buy and sale orders were placed in synchronized manner (i.e. difference

between placement of order by buyer and seller within one minute and order rate as

well as order quantity of buy side and sale side being same). I further note that

721545 shares constituted for 2.73% of the total purchase of Walmiki Shah Group

entities and 3.94% of the total sale of the Walmiki Shah Group entities. The summary

of the said synchronized trades entered into by various Noticees are as under:

Buy PAN Buy client name Synchronised buy trades

% of Market Volume

% of sync to total buy by client

Synchronised sale trades

% of Market Volume

% of sync to total sale by client

AAAPO2421P Santosh Deshmal Oswal 9680 0.02 1.75 0 0.00 0.00

AAPPP2610J Pradeepkumar Jashbhai Patel 2100 0.00 0.97 2400 0.00 2.27

AAUPW9971A Amar Premchand Walmiki 40299 0.08 1.10 45887 0.09 2.22

AAZPT9542R Bharat Shantilal Thakkar 32639 0.07 54.98 37053 0.07 66.92

ABLPT5138N Ragini Bipinbhai Thakkar 0 0.00 0.00 1500 0.00 0.69

ABYPT4984H Bipin Jayant Thaker 7800 0.02 20.55 7496 0.01 23.06

ACTPG8728N Navneetlal Jeevanlal Gandhi 50 0.00 0.02 2124 0.00 0.63

ACVPH5913N Rajesh Ravinarayan Hati 697 0.00 0.13 7660 0.02 2.41

AFMPJ7543L Chirag Rajnikant Jariwala 18800 0.04 38.96 11537 0.02 30.44

AFPPC9703G Kishore Chauhan 30530 0.06 17.02 58737 0.12 37.81

AFVPP7625L Tushar Rameshbhai Patel 11000 0.02 0.95 20763 0.04 4.63

AFZPS9107A Shashikant Keshavlal Shah 22800 0.05 10.93 5000 0.01 2.63

of 76

AGEPS0157L Samir Sureshbhai Shah 1924 0.00 0.25 250 0.00 0.05

AGQPB7879L Manoj Bhandari 2500 0.00 0.38 21250 0.04 4.29

AGXPP0488N Samirkumar Kanubhai Patel 0 0.00 0.00 490 0.00 1.19

AHNPG0002C Santosh Vishram Ghadshi 63856 0.13 5.76 15065 0.03 1.94

AIPPS9125H Jignesh C. Shah 0 0.00 0.00 3000 0.01 2.67

AJAPP5421B Shalin Kiritkumar Parikh 4038 0.01 1.92 0 0.00 0.00

AKCPG0246Q Mayank Navnitbhai Gandhi 2301 0.00 0.55 17310 0.03 4.46

AKCPG0247R Aditi M Gandhi 476 0.00 0.13 10000 0.02 3.01

AKGPP8679N Bhavesh Pabari 25792 0.05 18.33 22465 0.04 11.07

ALHPB9175D Rekha Bhandari 0 0.00 0.00 12000 0.02 5.09

ALHPP3489N Prem Mohanlal Parikh 12000 0.02 8.88 9865 0.02 9.37

ALZPB5747M Sunil Bhandari 19320 0.04 5.28 2990 0.01 2.71

AMFPP7028N Nareshbhai Devabhai Patel 1227 0.00 0.42 1500 0.00 2.07

ANNPM6298A Kaushik Rajnikant Mehta 45490 0.09 18.21 22376 0.04 14.21

ANOPS8607E Hemant Madhusudan Sheth 77695 0.16 21.17 30573 0.06 11.46

AOJPP8746B Ashokkumar Bhikhalal Parmar 2000 0.00 0.73 2000 0.00 3.17

AOSPG7834A Manisha Navneetlal Gandhi 8609 0.02 1.00 424 0.00 0.11

APGPP6166F Pandya Yaminiben M 29350 0.06 1.04 81111 0.16 3.83

ARJPP6330Q Pandya Hardik M 33900 0.07 1.44 62298 0.12 3.90

ARTPP9101B Bharatkumar Baldevbhai Parmar 13905 0.03 11.86 0 0.00 0.00

ASNPP5380P Laxman Dhirubhai Parmar 42574 0.09 1.90 68679 0.14 3.22

ASNPP5381N Shobhnaben R Parmar 35323 0.07 1.85 32574 0.07 2.36

ASQPP5072M Rameshbhai V Parmar 0 0.00 0.00 10000 0.02 1.80

AUVPP1737C Amisha Samir Patel 0 0.00 0.00 4010 0.01 7.48

AZCPS9537P Vipul Hiralal Shah 69532 0.14 19.29 29060 0.06 8.52

AZGPK7183F Dipika Dinesh Kankaria 14392 0.03 7.71 8890 0.02 5.33

AZGPK9995H Shreedhar Yellaiah Kodam 5486 0.01 1.24 14163 0.03 3.31

BLNPS3316L Ankit Sanchaniya 19001 0.04 15.62 30050 0.06 26.16

BRSPS0294N Vivek Kishanpal Samant 14459 0.03 30.00 8995 0.02 38.47

Grand Total 721545 1.44 2.73 721545 1.44 3.94

17. I also find that Shri Amar Premchand Walmiki, Shri Rajeshkumar Ravinaryan Hati,

Shri Tushar Rameshbhai Patel, Shri Manoj Bhandari, Shri Santosh Vishram Ghadshi,

Ms. Manishaben Navneetlal Gandhi, Yaminiben Maheshbhai Pandya, Hardik

Maheshbhai Pandya, Shri Laxmanbhai Dhirubhai Parmar, Ms. Shobhnaben

Rameshbhai Parmar and Shri Rameshbhai Vitthalbhai Parmar had indulged in

certain trades which were self trades in nature (i.e. same buy client as well as the

of 76

sale client for a given trade resulting in no change of beneficial ownership) and the

details of the said fictitious trades entered into by the said Noticees are as under:

Name of the client Total buy Total Sale Self Trade

% of Total Buy

% Total Sale

% of Market Volume

No of self trades

Amar Premchand Walmiki 3659394 2065126 42099 1.15 2.04 0.08 16

Rajesh Ravinarayan Hati 517973 318412 6632 1.28 2.08 0.01 7

Tushar Rameshbhai Patel 1152435 448779 1000 0.09 0.22 0.00 1

Manoj Bhandari 657036 495109 1 0.00 0.00 0.00 1

Santosh Vishram Ghadshi 1107847 777695 22227 2.01 2.86 0.04 8

Manisha Navneetlal Gandhi 862555 397466 280 0.03 0.07 0.00 1

Pandya Yaminiben M 2812779 2118841 811 0.03 0.04 0.00 14

Pandya Hardik M 2350885 1597062 46406 1.97 2.91 0.09 19

Laxman Dhirubhai Parmar 2242500 2133192 977 0.04 0.05 0.00 15

Shobhnaben R Parmar 1908227 1378547 412 0.02 0.03 0.00 14

Rameshbhai V Parmar 814920 556712 2509 0.31 0.45 0.01 2

Grand Total 18086551 12286941 123354 0.68 1.00 0.25 98

18. For the above fictitious trades, it was noted that the brokers mentioned in the table

below were appearing on both sides of the trade i.e. acted as broker and counter party

broker. The number of instances where in Arcadia had executed self trades on behalf of

its clients was significant and the details of the same are as under:

Buy and Sale Member Name Client Name Total Traded Qty

No of trades

Ami Stock and Share Brokers Pvt. Ltd.

Amar Premchand Walmiki 8984 6

Manoj Bhandari 1 1

Pandya Hardik M 54 3

Ami Stock and Share Brokers Pvt. Ltd. Total 9039 10

Arcadia Share & Stock Brokers Pvt. Ltd.

Laxman Dhirubhai Parmar

977

15

Manisha Navneetlal Gandhi 280 1

Rameshbhai V Parmar 2509 2

Shobhnaben R Parmar 412 14

Pandya Yaminiben M 811 14

Arcadia Share & Stock Brokers Pvt. Ltd. Total 4989 46

of 76

Grand Total 14028 56

19. From the price volume data analysis, I note that the scrip of WPPCL was traded on

312 trading days during the relevant period. Out of the 312 trading days, the group

entities had traded among themselves on 296 days, i.e. for 14.29% of the total

number of days the scrip was traded during the relevant period under investigation.

It was noted that the Walmiki Shah Group entities contributed to the daily market

volume of the scrip in the range from 5.63% on December 01, 2008 to 89.17% on

December 19, 2008. It was further alleged that out of 312 Walmiki Shah Group

trading days, on 255 trading days both buy and sell orders were placed within a

time difference of one minute. The said Walmiki Shah Group entities contribution to

daily market volume ranged from 41.68% on December 02, 2008 to 52.47% on

December 03, 2009.

20. On further examination, I find that out of 255 trading days, on 103 trading days the

trades executed by the Walmiki Shah Group entities were synchronized in nature,

thereby, contributing to the total market volume in the range from 3.59% on

December 29, 2009 to 15.35% on September 14, 2009.

21. I further note that out of 94439 trades executed during the period under

investigation, 24192 trades were placed at a price less than the Last Traded Price

(LTP) (Summation TP-LTP= ` -16711.74), 46028 trades were placed at a price equal

to the LTP and 24218 trades were placed at a price greater than LTP (Summation TP-

LTP= ` 17201.65). Upon further examination, it was also noted that, out of 94439

trades, the 51 Walmiki Shah Group entities had entered into 50869 buy transactions

while dealing through multiple brokers. Additionally, I note that out of 50869

trades, 11174 trades were placed at a price less than LTP (contributing a gross fall in

price by ` - 6233.74), 24654 trades were placed at a price equal to LTP and 15040

trades were placed at a price greater than LTP (contributing a gross increasing in

of 76

price by ` 11300.09). The details of individual contributions by entering into buy

transactions towards changing the price of the scrip are as under:

Name of the entiy No of trades

no of trades above LTP

Gross increase in price

No of trades less than LTP

Gross fall in price

No of trades at LTP

Net impact

Santosh Deshmal Oswal 302 111 37.75 12 -2.60 179 35.15

Samir Sureshbhai Shah (HUF) 248 63 71.27 82 -55.90 103 15.37

Spectrum Chemicals Pvt. Ltd 2 0 0.00 0 0.00 2 0.00

Pradeepkumar Jashbhai Patel 417 142 62.05 73 -23.30 202 38.75

Amar Premchand Walmiki 4768 1340 619.16 874 -348.89 2554 270.27

Bharat Shantilal Thakkar 23 2 1.85 11 -4.40 10 -2.55

Ragini Bipinbhai Thakkar 716 161 153.30 168 -97.85 387 55.45

Bipin Jayant Thaker 39 13 17.60 11 -5.65 15 11.95

Navneetlal Jeevanlal Gandhi 1163 348 327.00 341 -140.75 474 186.25

Janaki Bipin Thakkar 8 5 2.10 2 -0.40 1 1.70

Rajesh Ravinarayan Hati 1580 635 853.90 452 -427.90 493 426.00

Chirag Rajnikant Jariwala 21 3 1.15 8 -5.70 10 -4.55

Kishore Chauhan 115 12 13.30 13 -12.25 90 1.05

Manish Suresh Joshi 3 0 0.00 1 -0.05 2 -0.05

Tushar Rameshbhai Patel 1507 477 411.20 234 -258.05 796 153.15

Shashikant Keshavlal Shah 97 23 22.55 31 -30.45 43 -7.90

Samir Sureshbhai Shah 2915 472 405.91 490 -357.65 1953 48.26

Rakesh Gokulbhai Patel 16 6 1.30 5 -0.30 5 1.00

Manoj Bhandari 1495 510 231.45 291 -114.65 694 116.80

Samirkumar Kanubhai Patel 243 73 56.00 56 -28.20 114 27.80

Santosh Vishram Ghadshi 612 195 107.75 102 -39.60 315 68.15

Jignesh C. Shah 451 143 135.00 84 -49.30 224 85.70

Shalin Kiritkumar Parikh 738 259 211.15 136 -64.09 343 147.06

Bipinkumar Gandhi 110 46 11.15 4 -0.35 60 10.80

Mayank Navnitbhai Gandhi 869 272 239.40 200 -85.90 397 153.50

Aditi M Gandhi 558 183 142.60 90 -50.30 285 92.30

Avinash Bothra 1 0 0.00 1 -4.35 0 -4.35

Bhavesh Pabari 89 24 15.15 14 -9.55 51 5.60

Anand Kalu Marathe 1610 483 405.83 475 -307.20 651 98.63

Rekha Bhandari 833 93 45.90 26 -15.25 714 30.65

Prem Mohanlal Parikh 108 27 10.55 16 -4.45 65 6.10

Sunil Bhandari 210 33 15.65 6 -1.15 171 14.50

of 76

Nareshbhai Devabhai Patel 677 112 70.13 81 -40.00 484 30.13

Kaushik Rajnikant Mehta 157 25 16.10 20 -13.65 112 2.45

Hemant Madhusudan Sheth 187 56 24.65 47 -22.10 84 2.55

Ashokkumar Bhikhalal Parmar 428 119 58.65 94 -39.05 215 19.60

Manisha Navneetlal Gandhi 2274 423 241.58 341 -183.96 1510 57.62

Pandya Yaminiben M 7259 2016 2029.55 2192 -1276.75 3051 752.80

Pandya Hardik M 6336 2337 1565.65 1448 -736.95 2551 828.70

Bharatkumar Baldevbhai Parmar 143 32 21.30 33 -25.35 78 -4.05

Dhirubhai Antolbhai Parmar 952 272 290.90 218 -126.00 462 164.90

Laxman Dhirubhai Parmar 4885 1675 1218.60 1225 -629.25 1985 589.35

Shobhnaben R Parmar 3479 1223 881.40 846 -429.45 1410 451.95

Rameshbhai V Parmar 1071 298 129.51 125 -56.85 648 72.66

Amisha Samir Patel 494 85 33.50 58 -27.05 351 6.45

Vipul Hiralal Shah 212 53 24.95 52 -30.10 107 -5.15

Dipika Dinesh Kankaria 94 37 22.00 34 -22.40 23 -0.40

Shreedhar Yellaiah Kodam 231 89 25.00 36 -19.75 106 5.25

Mala Hemant Sheth 1 0 0.00 0 0.00 1 0.00

Ankit Sanchaniya 102 31 16.95 11 -6.00 60 10.95

Vivek Kishanpal Samant 20 3 0.70 4 -2.65 13 -1.95

Grand Total 50869 15040 11300.09 11174 -6233.74 24654 5066.35

22. From the buy orders of the above Noticees, whose orders made a significant net

impact (i.e. more than 100), and by analyzing the sell orders available at that

instance, it was observed that in respect of certain trades (marked as #), the buy side

and sell side Noticees were connected persons from the same group. Further, in

these trades, first the sell order rate were placed above the LTP, then the buy orders

were placed above these sell orders rates and the trade was executed at the

prevailing sell order rate. Therefore, it was alleged that these Noticees by entering

into trades among the group and also by placing the buy orders at rates higher than

the best available sell order rates increased the price of the scrip above the LTP and

thereby, affected the equilibrium at the platform of the exchange in the scrip.

Accordingly, the best sell orders available at the instance of the said buy orders are

as under:

Client Buy Order LTP Buy Buy Trad Best Client Orderr Best Best

of 76

Name Order Number

Time Order Rate

Order Quantity

ed Price/Qty

pending Ask Order Number

Name Time pending ASK Order rates

pending Ask Order Quantity

Amar Premchand Walmiki

13000014045391

14:52:37

150 154 3000

154.5/ 2461

18000012019472

Mitesh Champaklal Parikh

11:16:38

154.5 8473


13000025014765

10:37:30

325.5 330 12000

329.95/ 249

16000035017265

Nirav Rajababu Gandhi

10:37:18

329.95

249


15000026056229

15:43:15

321.1 327.6 2500

327.6/11 1300002

4046629

Sameer Champaklal Sanghvi

15:29:27

325 11


16000073038724

14:38:09

150 155 5000

154/200 1400010

5050040

Pandya Hardik M #

14:29:55

154 200

Navaneetlal Jeevanlal Gandhi

13000049044756

15:09:45

164.1 167.95 3000

167.5/ 3000

22000060026870

Laxmanbhai Dhirubhai Parmar #

15:09:43

167.5 5000


15000014000908

09:55:28

160.65

165 1200

164/ 1000

21000016000287

Yaminiben Maheshbhai Pandya #

09:55:01

164 1000


22000067013889

10:20:06

458.25

459.5 2000

459.5/ 2000

13000056008376

Vipul Hiralal Shah #

10:18:37

459.5 2195


17000012009961

10:35:39

151.25

152.95 1500

152.8/ 1500

14000015009276

Nareshbhai D Patel #

10:35:35

152.8 2000

Rajeshkumar Ravinarayan Hati

12000031019198

13:47:29

308.05

310 2100

310/ 2100

13000023022121

Mohd Mustahas Mohd Ilyas Shaikh

13:47:04

310 2100


17000064019865

14:13:09

291.15

294.25 3500

294.25/ 3000

11000052029033

Janki Ramesh Thakkar

14:09:34

294.25

3000

Rajeshkumar Ravinaray

14000027037912

14:28:04

310.05

312 6000 311.95/ 5000

12000028024146

Om Parkash Gupta

14:28:01

311.95

5000

of 76

an Hati


17000064018975

15:05:14

313 314.75 2000

314.7/ 2000

14000066025861

Om Parkash Gupta

15:05:11

314.7 2500

Tushar Rameshbhai Patel

18520600001729931

15:10:05

150.5 156.15 2500

156.15/ 2465

313020100000124032

Nupoor Capitals Private Limited

14:26:11

156.15

3154


18520700001615679

15:08:20

149.35

153 2000

153/ 2000 3018202

00020922391

Manishaben Navneetlal Gandhi #

15:04:59

153 5000


303620600000110987

15:04:34

145 148 2050

146.85/ 1898

96600100020152262

Amar Premchand Walmiki #

15:02:35

146.85

2000

Manoj B Bhandari

15000021033506

13:45:21

172.5 174.65 4991 174.35/ 399

19000021032506

Hitendra S Solanki

13:44:34

174.35

399

Manoj B Bhandari

96600200020195963

15:25:12

79.9 79 3500 81.1/ 1591

5301700020198385

Hansa Kunverji Hirani

15:18:27

81.1 1995

Manoj B Bhandari

96604000000046266

12:38:16

80.1 81.25 1500 81.25/ 1500

94300200020135466

Jyotiben Unmeshbhai Shah

11:49:31

81.25 3594

Manoj B Bhandari

23000026036373

14:47:56

174.2 180 100 175.65/ 100

16000023036371

Kumar Mangal

14:47:29

175.65

100

Shalin Kiritkumar Parikh

13000051044197

15:01:55

235.75

240 2014

237.3/ 290 1800006

6056514

Hitendra Mahendrakumar Kajiwala

14:59:22

237.3 290


15000053016372

12:04:52

269.1 273 700

273/ 700 1300005

1015268

Santosh Vishram Ghadshi #

11:49:59

273 700


16000021058905

15:29:52

264.1 270 400 266.4/ 400

11000020039883

Sunil Jain 15:29:48

266.4 500


19000013003496

09:59:51

161 164 200

164/ 200

19000013003300

Yaminiben Maheshbhai Pandya #

09:59:17

164 500

Mayank Navnitbhai Gandhi

11000052020548

12:00:16

330.55

340 600 331.85/ 600

22000064014318

Madhvi Bijay Solanki

11:09:13

331.85

600

Mayank Navnitbh

11000056012860

10:06:20

473.5 480 5000 474.95/

12000060008101

Sameer Champak

09:50:11

474.95

448

of 76

ai Gandhi 448 lal Sanghvi


13000025005796

09:01:43

461.4 480 2000

463.85/ 200

23000066001079

Sameer Champaklal Sanghvi

09:00:08

463.85

200


14000070000363

09:00:10

474.9 480 4001 477/ 2651

18000070000919

Chetan Praful Hemani

09:00:10

477 4000

Yaminiben Maheshbhai Pandya

12000056016295

11:33:19

275 280 4000

277.5/ 4000

21000062025022

Narendrakumar Shah

11:32:36

277.5 5000


19000032025695

12:58:57

269.3 271 4000

271/ 4000

12000031016709

Santosh Vishram Ghadshi #

12:49:30

271 7300


21000062033341

14:28:38

272.5 273.75 3600

273.75 / 3600

21000062033288

Hardik Maheshbhai Pandya #

14:27:51

273.75

3600


19000018033878

12:02:57

180 182 2500

181.25/ 2500

13000019041258

Amisha Samir Patel #

12:02:53

181.25

2500

Dhirubhai Antolbhai Parmar

18000035000475

09:56:16

268.2 270 500 270/ 500

14000031001617

Amisha Samir Patel #

09:55:10

270 1400


23000061050200

15:07:34

309 313 2020

312.4/ 2000

21000065037344

Jikeshkumar Kanubhai Patel

15:07:32

312.4 2000


25320500022976609

15:20:38

148.5 150.5 5000 150.5/ 5000

313020100000121348

Rajendra Kumar Ranka

14:50:33

150.5 5185


25320600023017994

15:00:51

143 147 2000

146.9/ 1989

62006900020186903

Hemant Madhusudan Sheth #

14:39:28

146.9 1989

Laxmanbhai Dhirubhai Parmar

11000056002928

09:56:40

349.75

354.85 2501

354.5/ 2500

17000066001946

Vaishali Pratik Shah

09:56:38

354.5 2500


21000030002899

09:03:43

385.2 392.95 1500

391/ 1500 2300003

2003830

Pravinbhai Harmanbhai Patel

09:03:40

391 2000

of 76


14000029002712

09:55:26

353.5 360 5001

358.75/ 2500

15000025002101

Vaishali Pratik Shah

09:55:25

358.75

2500


12000057045437

15:10:53

311 313 8500

311/ 2344 2000006

5043258

Jeetendra Maheshchandra Dave

15:08:23

311 2344

Shobhnaben Rameshbhai Parmar

11000032000993

09:55:21

351.9 360 3750

358/ 2500

18000036001164

Jayantilal Ochhavlal Shah

09:55:05

358 2500


16000052002130

09:01:16

439.35

441.4 1800

441.4/ 1800

19000078000158

Navaneetlal Jeevanlal Gandhi #

09:01:07

441.4 2000


12000027040958

10:49:42

410.2 413 4000

413/ 4000

17000028019004

Vinod Hari Mhatre

10:38:40

413 4430


14000077000333

09:00:07

434.7 440 2100

438.4/ 1600

22000073000399

Pratik Mahendrabhai Shah

09:00:06

438.4 2082

23. In addition to above, I note that the price of the scrip opened at `9.54 and touched a

high of ` 510.00 i.e. there was increase of ` 500.46. I also note that on 118 trading

days and 974 occasions a new high price was discovered. I further note that out of

974 occasions on 673 occasions (i.e on 100 days out of 118 days), Santosh Deshmal

Oswal, Pradeepkumar Jashbhai Patel, Amar Premchand Walmiki, Ragini Bipinbhai

Thakkar, Navneetlal Jeevanlal Gandhi, Rajesh Ravinarayan Hati, Tushar

Rameshbhai Patel, Samir Shah, Manoj Bhandari, Samirkumar Kanubhai Patel,

Jignesh C. Shah, Shalin Kiritkumar Parikh, Bipinkumar Gandhi, Mayank Navnitbhai

Gandhi, Aditi M Gandhi, Anand Kalu Marathe, Rekha Bhandari, Sunil Bhandari,

Ashokkumar Bhikhalal Parmar, Manisha Navneetlal Gandhi, Pandya Yaminiben M,

Pandya Hardik M, Dhirubhai Antolbhai Parmar, Laxman Dhirubhai Parmar,

of 76

Shobhnaben R Parmar, Rameshbhai V Parmar, Amisha Samir Patel and Ankit

Sanchaniya majorly contributed to increase in the price.

24. Further, from the trading activity in the scrip of WPPCL for the period from March

15, 2010 to June 30, 2010 on BSE, I find that 40 Walmiki Shah Group entities namely,

Shri Santosh Deshmal Oswal, Anand Finstock Services Ltd, Shri Bhupesh Rathod,

Samir Sureshbhai Shah (HUF), Shri Pradeepkumar Jashbhai Patel, Shri Amar

Premchand Walmiki, Ms. Ragini Bipinbhai Thakkar, Shri Navneetlal Jeevanlal

Gandhi, Ms. Janaki Bipin Thakkar, Shri Rajesh Ravinarayan Hati, Shri Tushar

Rameshbhai Patel, Shri Shashikant Keshavlal Shah, Shri Samir Sureshbhai Shah, Shri

Rakesh Gokulbhai Patel, Shri Santosh Vishram Ghadshi, Shri Jignesh C. Shah, Shri

Shalin Kiritkumar Parikh, Shri Mayank Navnitbhai Gandhi, Ms.Aditi M Gandhi,

Shri Avinash Bothra, Ms.Rekha Bhandari, Shri Jayvishal Dilipsingh Barot, Shri Sunil

Bhandari, Shri Nareshbhai Devabhai Patel, Shri Kaushik Rajnikant Mehta, Shri

Ashokkumar Bhikhalal Parmar, Shri Vishal Pare, Pandya Yaminiben M, Pannalal

Ukaram Prajapati, Pandya Hardik M, Shri Bharatkumar Baldevbhai Parmar, Shri

Dhirubhai Antolbhai Parmar, Shri Laxman Dhirubhai Parmar, Ms.Shobhnaben R

Parmar, Shri Rameshbhai V Parmar, Shri Vipul Hiralal Shah, Ms.Dipika Dinesh

Kankaria, Shri Shreedhar Yellaiah Kodam, Ms.Vaishali Ashvinbhai Parmar and Shri

Ankit Sanchaniya connected to each other had traded heavily in the scrip of WPPCL

through multiple brokers. The relationship between the 40 Walmiki Shah Group

entities is detailed as under:

Client Name

KYC Relation

Fund Movement

Share movement through off market

Client Name

KYC Relation Fund Movement

Share movement through off market

1.Santosh Deshmal Oswal

With sl. no.30, 13, 4, 6, 10, 15, 28, 34, 35.

21.Rekha Bhandari

Sl. no. 21 is wife of sl. no. 23.

With sl. no. 6, 30.

With sl. no. 6.

2.Anand Finstock Services Ltd

Introduced by sl. no. 13 –as per KYC submitted by Arcadia.

With sl. No. 13.

With sl. No.13.

22.Jayvishal Dilipsingh Barot


With sl. no. 13.

With sl. no.6, 7, 9, 13, 14, 17, 33, 39.

3.Bhupesh Rathod

With Sl. No. 40.

23.Sunil Bhandari

Sl. no. 23 is the husband of sl. no. 21.

With sl. no 6, 15.

4.Samir Sureshbhai

Sl. no. 5, 7, 9, 16, 17, 18, 19, 24, 26, 28, 32, 33, 34, 35, are

With sl. no.32,

With sl. no. 30, 4, 1, 13,

24.Nareshbhai

Sl. no. 8 has off market transaction with Manisha

With sl. no. 13, 26,

With sl. no. 4, 5, 8,

of 76

Shah (HUF) its clients. Sl. no. 1, 6, 15, 22, 23, 30 are Paras Chaplot friend and he came in touch with Paras Chaplot as a share broker.

30, 14, 26, 13, 28, 33, 6, 34, 18, 22.

19, 24, 35. Devabhai Patel

Navneetlal Gandhi, Manisha Navneetlal Gandhi has off-market transaction with sl. no. 6 & 13.

14. 13.

5.Pradeepkumar Jashbhai Patel

With sl. no. 13, 6, 24, 26.

25.Kaushik Rajnikant Mehta

Sl. no. 36 is linked to Bhavesh Pabari and sl.no. 13.

With sl. no.36, 15.

With sl. No , 13, 31, 36, Bhavesh Pabari.

6.Amar Premchand Walmiki

With sl. no. 23, 30, 13, 15, 21, 28.

With sl. no.1, 5, 8, 11, 13, 14, 15, 18, 19, 31, 32, 35, 22, 39.

26.Ashokkumar Bhikhalal Parmar

Introduced by sl. no. 13 –as per KYC submitted by VSE Stock Services Ltd. Sl.no. 26 knows sl. no. 13 who is a stock broker. Sl. no. 33, 34, 35, 32 are his relatives and he has lent his demat a/c for Rs.6,000/- to S. no. 13 for third party use on the instruction of Mr. Paras Chaplot.

With sl. no.13, 30, 14.

With sl. no.13, 5, 10, 28, 30, 34, 35.

7.Ragini Bipinbhai Thakkar

Same address as sl.no. 9 who was introduced by sl. no. 13. Introduced by sl. no. 30 –as per KYC submitted by VSE Stock Services Ltd.

With sl. no. 13, 19, 28, 22.

27.Vishal Pare

Sl. No. 20 is his friend. Sl. No.37 is the wife of sl. No.20 & she is known to him. Sl. no. 23 has offered him Rs.10,000/- per month for lending its trading a/c.

8.Navneetlal Jeevanlal Gandhi


With sl. no.6, 13, 24, 35. 28.Pandya

Yaminiben M

Same address as that of sl. no. 30. Sl. no. 30 is his relative and he is known to Sl. no. 13.

With sl. no. 30, 13, 15, 14, 39.

With sl. no. 33, 1, 7, 10, 13, 26, 30, 32, 33, 34, 35.

9.Janaki Bipin Thakkar

Introduced by sl. no. 13 –as per KYC submitted by Active Finstock.

With sl. no.22.

29.Pannalal Ukaram Prajapati

With sl. no.30, 10, 13.

10.Rajesh Ravinarayan Hati

With sl. no.30, 6, 1, 16, 26, 28, 29, 36, 40.

30.Pandya Hardik M

Having common tel. no. as that of sl. no. 13. From KYC submitted by VSE Stock Services Limited, it is observed that sl. No. 13 is the promoter of M/s. Samir Shah & Co. and Sl.no.30 is one of its employees. Sl. no. 28 is his relative and he is known to Sl. no. 13.

With sl. no. 21, 6, 13, 14, 28, 15, 4, 21, 18, 39.

With sl. no. 13, 26, 28, 29, 35, 1, 10, 12, 14, 15.

11.Tushar Rameshbhai Patel

With sl. no.6, 13, 15, 31.

31.Bharatkumar Baldevbhai Parmar

Has common tel. no. with sl. no. 35.

With sl. no.11, 6, 13, 14.

12.Shashikant Keshavlal Shah

Sl. no. 36 is witness as per KYC furnished by Gogia Capital Services Ltd.

With sl. no.13, 14, 30.

32.Dhirubhai Antolbhai Parmar

Introduced by sl. no. 30. With sl. no.13,

With sl. no.6, 13, 28, 34, 35, 39.

13.Samir Sureshbhai Shah

Sl. no. 8 is his father. Sl. no. 5, 7, 9, 16, 17, 18, 19, 22, 24, 26, 28, 32, 33, 34, 35, are its clients. Sl. no. 1, 6, 15, 23, 30 are Paras Chaplot friend and he came in touch with Paras

With sl. no.6, 13, 30, 19, 34, 1, 4, 5, 7, 8, 11, 14, 15, 17, 18, 20, 22, 24, 26, 28,

33.Laxman Dhirubhai Parmar

Having common tel. no. as that of sl. no. 13- KYC document submitted by Shah Investor’s Home Limited. Sl. no. 26, 34, 35, 32 are his relatives & sl. no. 13

With sl. no.30, 13.

With sl. no.13, 22, 28, 14, 19, 32.

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Chaplot as a share broker.

29, 30, 31, 32, 33, 34, 35, 37,

is a stock broker and his advisor and well wisher. It may also be noted that he lent his demat a/c for a sum of Rs.6,000/- per month for third party use upon the instruction of Sl. no. 13 for the third party use by Mr. Paras Chaplot.

14.Rakesh Gokulbhai Patel

With sl. no. 24, 30, 13.

With sl. no.13, 6, 12, 16, 19, 22, 30, 31, 33, 37.

34.Shobhnaben R Parmar

Sl. no. 34 has the same address as that of sl. no. 35. Sl. no. 26, 33, 35, 32 are his relatives & he knows sl. no. 13.

With sl. no.13, 14.

With sl. no.6, 13, 1, 20, 26, 28, 32, 35, 37.

15.Santosh Vishram Ghadshi

With sl. no. 30, 6, 11, 13.

With sl. no.6, 13, 1, 38, 10, 11. 35.Ramesh

bhai V Parmar

Having common tel. no. with sl. no. 13. Sl. no. 33, 34, 32 are his relatives & he knows sl. no. 13.


With sl. no.6, 28, 30, 1, 4, 8, 13, 20, 26, 32, 34.

16.Jignesh C. Shah

Sl. No. 30 is the introducer of Sl. no. 16. Sl. no. 30 has off market transactions with Bhavesh Pabari and Hemant Sheth.

With sl. no.14.

36.Vipul Hiralal Shah

Sl. No. 25 has off-market transaction with Bhavesh Pabari.

With sl. No. 25.

With sl. no 10, 13, 38.

17.Shalin Kiritkumar Parikh

Introduced by sl. no. 13 –as per KYC submitted by VSE Stock Services Ltd. Sl. no. 13 has off market transactions with sl. no. 6 & Bhavesh Pabari


37.Dipika Dinesh Kankaria

Sl. no. 20 is his husband. Sl. no. 23 offered him Rs.10,000/- per month for lending its trading account.

With sl. No. 24, 30, 13.

With sl. No. 13, 34, 14, 20.

18.Mayank Navnitbhai Gandhi

Same address with sl. no. 19. Sl. no. 13 is his relative. Sl. no. 25 & 26 have joint bank a/c.

With sl. no. 13, 14, 30.

With sl. no. 6, 13, 19.

38.Shreedhar Yellaiah Kodam

With sl. No.15.

19.Aditi M Gandhi

Sl. no. 13 is his relative. Sl. no. 25 & 26 have joint bank a/c.

With sl. no.6, 13, 4, 7, 33, 14, 18,

39.Vaishali Ashvinbhai Parmar

Same address as that of sl. No. 33.

With sl. No.13.

With sl. No.13, 6, 22, 32.

20.Avinash Bothra

Sl. no. 37 is his wife. Sl. no. 23 has offered him Rs.10,000/- per month for lending its trading a/c.

With sl. no. 13, 34, 35, 37.

40.Ankit Sanchaniya

Same Tel. no. with Prem Parikh and also shares Tel. no. with Bhavesh Pabari who is the nominee for his a/c.

With sl. no. 10.

25. From the trade log analysis, I find that these 40 Walmiki Shah Group entities dealing

through multiple brokers purchased 116630714 shares and sold 116046856 shares

during the period under investigation. I note that out of the total purchase and sale

of 116630714 shares and 116046856 shares, respectively, by the 40 Walmiki Shah

Group entities, 38 Walmiki Shah Group entities traded for 55914388 shares (i.e.

21.96% of the market volume) accounting for 47.94% of the total purchase by the

group and 48.18% of the total sale by the group, within themselves.

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26. Further I note that out of the total trading of 55914388 shares within the group

entities, for 17217572 shares accounting for 6.76% of the market volume the buy and

sale orders were placed within one minute time difference. I also note that 17217572

shares constituted for 14.76% of the total purchase of Walmiki Shah Group entities

and 14.84% of the total sale of the Walmiki Shah Group entities. Out of 17217572

shares, I note that for 1427634 shares accounting for 0.56% of the total market

volume, the buy and sale orders were placed in synchronised manner (i.e. difference


well as order quantity of buy side and sale side being same). I additionally note that

1427634 shares constituted for 1.22% of the total purchase of Walmiki Shah Group

entities and 1.23% of the total sale of the Walmiki Shah Group entities. The summary

of the said synchronized trades by various Noticees are as under:

PANNO Client Name

Synchronised buy trades

% of Market Volume

% of sync to total buy by client

Synchronised sale trades

% of Market Volume

% of sync to total sale by client

AABCA6413F Anand Finstock Services Ltd 0 0.00 0.00 24990 0.01 0.45

AAUPW9971A Amar Premchand Walmiki 65000 0.03 0.58 0 0.00 0.00

AFVPP7625L Tushar Rameshbhai Patel 49200 0.02 1.11 50000 0.02 1.20

AHNPG0002C Santosh Vishram Ghadshi 16458 0.01 0.19 2998 0.00 0.04

AIPPS9125H Jignesh C. Shah 0 0.00 0.00 14604 0.01 1.58

AKCPG0246Q Mayank Navnitbhai Gandhi 14604 0.01 0.26 50000 0.02 0.87

AKCPG0247R Aditi M Gandhi 0 0.00 0.00 45426 0.02 0.75

AKFPB9350B Avinash Bothra 56196 0.02 4.89 66109 0.03 4.44

ALHPB9175D Rekha Bhandari 0 0.00 0.00 181267 0.07 9.57

ALZPB5747M Sunil Bhandari 141366 0.06 8.32 23004 0.01 1.03

ANNPM6298A Kaushik Rajnikant Mehta 39899 0.02 1.41 20000 0.01 0.83

AOJPP8746B Ashokkumar Bhikhalal Parmar 89901 0.04 3.38 0 0.00 0.00

AOVPP9130K Vishal Pare 0 0.00 0.00 247000 0.10 5.75

APGPP6166F Pandya Yaminiben M 26530 0.01 0.39 49001 0.02 0.66

AQIPP7482K Pannalal Ukaram Prajapati 74990 0.03 11.96 23000 0.01 3.53

ARTPP9101B Bharatkumar Baldevbhai Parmar 102998 0.04 1.01 101040 0.04 1.00

ASNPP5380P Laxman Dhirubhai Parmar 23004 0.01 0.47 93745 0.04 1.67

ASNPP5381N Shobhnaben R Parmar 39250 0.02 0.52 72397 0.03 1.01

of 76

ASQPP5072M Rameshbhai V Parmar 65109 0.03 1.32 54205 0.02 1.08

AZCPS9537P Vipul Hiralal Shah 297184 0.12 6.06 198848 0.08 5.10

AZGPK7183F Dipika Dinesh Kankaria 273000 0.11 20.16 100000 0.04 6.10

AZGPK9995H Shreedhar Yellaiah Kodam 2945 0.00 0.18 10000 0.00 0.55

BLNPS3316L Ankit Sanchaniya 50000 0.02 50.00 0 0.00 0.00

Grand Total 1427634 0.56 1.22 1427634 0.56 1.23

I also find that Anand Finstock Services Ltd, Shri Amar Premchand Walmiki, Ms.

Ragini Bipinbhai Thakkar, Ms. Janaki Bipin Thakkar, Shri Samir Sureshbhai Shah, Shri

Santosh Vishram Ghadshi, Shri Jignesh C. Shah, Shri Mayank Navnitbhai Gandhi,

Ms.Aditi M Gandhi, Pandya Yaminiben M, Pandya Hardik M, Shri Bharatkumar

Baldevbhai Parmar, Ms. Shobhnaben R Parmar, Shri Rameshbhai V Parmar and Shri

Vipul Hiralal Shah had indulged in certain trades which were self trades in nature

while trading through their multiple brokers including Arcadia. The details of the said

fictitious trades indulged into by the said Noticees are as under:

of 76

PAN

Name of the

entity Total buy Total sale

Self

trade

qty

% of

Total

Buy

%

Total

Sale

% of

Mark

et

Volu

me

No of

Self

trades

AABCA6413F

Anand

Finstock

Services Ltd 5853295 5533406 1200 0.02 0.02 0.00 2

AAUPW9971A

Amar

Premchand

Walmiki 11140657 11935307 306168 2.75 2.57 0.12 15

ABLPT5138N

Ragini

Bipinbhai

Thakkar 663276 681205 1 0.00 0.00 0.00 1

ACUPT4245J

Janaki Bipin

Thakkar 203369 198239 61 0.03 0.03 0.00 1

AGEPS0157L

Samir

Sureshbhai

Shah 186796 124042 2 0.00 0.00 0.00 1

AHNPG0002C

Santosh

Vishram

Ghadshi 8464535 7230929 46933 0.55 0.65 0.02 11

AIPPS9125H

Jignesh C.

Shah 929653 923360 1001 0.11 0.11 0.00 2

AKCPG0246Q

Mayank

Navnitbhai

Gandhi 5612692 5749473 101 0.00 0.00 0.00 2

AKCPG0247R

Aditi M

Gandhi 5695018 6060708 201 0.00 0.00 0.00 2

APGPP6166F

Pandya

Yaminiben M 6854348 7372157 82037 1.20 1.11 0.03 7

ARJPP6330Q

Pandya Hardik

M 7240519 7338471 449370 6.21 6.12 0.18 17

ARTPP9101B

Bharatkumar

Baldevbhai

Parmar 10180688 10070174 160268 1.57 1.59 0.06 15

ASNPP5381N

Shobhnaben R

Parmar 7486904 7176206 118644 1.58 1.65 0.05 22

ASQPP5072M

Rameshbhai V

Parmar 4917052 5040789 10 0.00 0.00 0.00 2

AZCPS9537P

Vipul Hiralal

Shah 4903038 3901687 109598 2.24 2.81 0.04 2

Grand Total 80331840 79336153 1275595 1.59 1.61 0.50 102

of 76

27. For the above fictitious trades, it was noted that the brokers mentioned in the table

below were appearing on both sides of the trade i.e. acted as broker and counter party

broker. The number of instances where in Arcadia had executed self trades on behalf of

its clients was significant and the details of the same are as under:

Buy and Sale Member Name Client Name Total Traded Qty No of trades

Arcadia Share & Stock Brokers Pvt. Ltd.

Aditi M Gandhi 201 2

Anand Finstock Services Ltd 1200 2

Mayank Navnitbhai Gandhi 101 2

Rameshbhai V Parmar 10 2

Pandya Yaminiben M 22037 5

Arcadia Share & Stock Brokers Pvt. Ltd. Total 23549 13

SSJ Finance & Securities Pvt. Ltd.

Bharatkumar Baldevbhai Parmar 10987 9

SSJ Finance & Securities Pvt. Ltd. Total 10987 9

VSE Stock Services Ltd.

Janaki Bipin Thakkar 61 1

Jignesh C. Shah 1001 2

Ragini Bipinbhai Thakkar 1 1

Samir Sureshbhai Shah 2 1

VSE Stock Services Ltd. Total 1065 5

Grand Total 35601 27

28. From the Price volume data analysis, I note that the scrip of WPPCL was traded on

75 trading days during the relevant period. Out of 75 trading days the group entities

traded among themselves on all 75 days. It was noted that the Walmiki Shah Group

entities contributed for 44.97% to the daily market volume on April 01, 2010 and

their contribution to daily market volume ranged from 0.26% on March 16, 2010 to

44.97% on April 01, 2010. Out of the 75 Walmiki Shah Group trading days, on 73

trading days both buy and sell orders were placed within time difference of one

minute. It was, therefore, alleged that the Walmiki Shah Group entities had

contributed to the daily market volume ranging from 0.03% on March 16, 2010 to

25.35% on April 20, 2010.

29. I find that out of 73 trading days, on 32 trading days the trades executed by the

Walmiki Shah Group entities were synchronized in nature. It was, therefore, alleged

of 76

in the SCN that the Walmiki Shah Group entities by executing synchronized trades

among the group entities, contributed to the total market volume ranged from 0.08%

on April 19, 2010 to 4.07% on May 27, 2010.

30. I further find that the price of the scrip opened at `34.00 and touched a high of `

74.50 i.e. there was increase of ` 40.50. I note that on 18 trading days and 291

occasions a new high price was discovered. Further, I note that out of 291 occasions

on 195 occasions (on 17 days out of 18 days), Shri Bharatkumar Baldevbhai Parmar,

Shri Kaushik Rajnikant Mehta, Anand Finstock Services Ltd, Shri Ashokkumar

Bhikhalal Parmar, Shri Santosh Deshmal Oswal, Shri Mayank Navnitbhai Gandhi,

Hardik Maheshbhai Pandya, Ms. Shobhnaben Rameshbhai Parmar, Shri

Laxmanbhai Dhirubhai Parmar, Ms. Vaishali Ashvinbhai Parmar, Shri Vipul Hiralal

Shah and Ms. Aditi Mayank Gandhi had contributed to increase of `29.30 (out of a

total of `40.50).

31. It was, therefore, alleged in the SCN that 1. Shri Santosh Deshmal Oswal, 2. Shri

Pradeepkumar Jashbhai Patel, 3. Shri Amar Premchand Walmiki, 4. Shri Bharat

Shantilal Thakkar, 5. Ms. Ragini Bipinbhai Thakkar, 6. Shri Bipin Jayant Thakkar, 7.

Shri Navneetlal Jeevanlal Gandhi, 8. Shri Rajesh Ravinarayan Hati, 9. Shri Chraj

Rajnikant Jariwala, 10. Shri Kishore Chauhan, 11. Shri Tushar Rameshbhai Patel, 12.

Shri Shashikant Keshavlal Shah, 13. Shri Samir Sureshbhai Shah, 14. Shri Manoj

Bhandari, 15. Shri Samirkumar Kanubhai Patel, 16. Shri Santosh Vishram Ghadshi,

17. Shri Jignesh C. Shah, 18. Shri Shalin Kirtikumar Parikh, 19. Shri Mayank

Navnitbhai Gandhi, 20. Ms. Aditi M Gandhi, 21. Shri Avinash Bothra, 22. Shri

Bhavesh Pabari, 23. Ms. Rekha Bhandari, 24. Shri Prem Mohanlal Parikh, 25. Shri

Sunil Bhandari, 26. Shri Nareshbhai Devbhai Patel, 27. Shri Kaushik Rajnikant

Mehta, 28. Shri Hemant Madhusudan Sheth, 29. Shri Ashokkumar Bhikhalal

Parmar, 30. Ms. Manisha Navneetlal Gandhi, 31. Pandya Yaminiben M, 32. Pandya

Hardik M, 33. Shri Bharatkumar Baldevbhai Parmar, 34. Shri Laxman Dhirubhai

Parmar, 35. Ms. Shobhnaben R Parmar, 36. Shri Rameshbhai V Parmar, 37. Ms.

of 76

Amisha Samir Patel, 38. Shri Vipul Hiralal Shah, 39. Ms. Dipika Dinesh Kankaria, 40.

Shri Shreedhar Yellaiah Kodam, 41. Shri Ankit Sanchaniya, 42. Shri Vivek Kishanpal

Samant, 43. Anand Finstock Services Limited, 44. Shri Vishal Pare, 45. Shri Pannalal

Ukaram Prajapati, 46. Ms. Vaishali Ashvinbhai Parmar, 47. Samir Sureshbhai Shah

(HUF), 48. Spectrum Chemicals Private Limited, 49. Ms. Janaki Bipin Thakkar, 50.

Shri Manish Suresh Joshi, 51. Shri Rakesh Gokulbhai Patel, 52. Shri Bipin Kumar

Gandhi, 53. Shri Anand Kalu Marathe, 54. Shri Dhirubhai Antolbhai Parmar, 55. Ms.

Mala Hemant Sheth, 56. Shri Bhupesh Rathod and 57. Shri Jayvishal Dilipsingh

Barot by indulging in manipulative trade practices in the scrip of WPPCL on BSE as

mentioned above, had violated Regulations 3(a), (b), (c), (d), 4(1) and 4(2)(a) (b) (e) &

(g) of the PFUTP Regulations thereby, created artificial volumes and price in the

scrip of WPPCL and further, alleged that Arcadia, by executing the manipulative

trades on behalf of the Noticees, had violated Clauses A(1), (2) & (3) of the Code of

Conduct for Stock Brokers as specified under schedule II read with Regulation 7 of

the Broker Regulations.

REPLIES: Shri Samir Sureshbhai Shah, Shri Mayank Navneetbhai Gandhi, Ms. Aditi M

Gandhi, Shri Ashokkumar Bhikhalal Parmar, Yaminiben Pandya, Hardik M Pandya,

Shri Laxman Dhirubhai Parmar,Ms. Shobhanaben R Parmar, Shri Rameshbhai V

Parmar,Samir Sureshbhai Shah (HUF) & Shri Rakesh Gokulbhai Patel:

32. Vide separate but similar letters dated December 21 & 23, 2013 the said entities have

submitted their separate but identical replies to the SCN. They submitted that they

have been a victim of the fraud done by Mr. Paras Chaplot. They further submitted

that Mr. Paras Chaplot is not available / traceable . The entities stated that they are

not connected to any of the group entities and that they were unaware of the

manipulation and fraudulent activities being carried out in the scrip of WPPCL.

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Shri Navneetlal Jeevanlal Gandhi, Shri Shri Pradip J Patel, Ms. Ragini B. Thakkar,

Shri Samirkumar Kanubhai Patel, Shri Jignesh C. Shah, Shri Shalin Kirtikumar

Parikh, Shri Nareshbhai Devabhai Patel, Ms. Manisha Navneetlal Gandhi, Ms.

Amisha Samir Patel, Ms. Vaishali A. Parmar, Ms. Janki B. Thakkar, Dhirubhai

Antolbhai Parmar & Shri Jayvishal Dilipsingh Barot:

33. Vide letters dated December 02, 03, 05, 06, 07, 08 & 12, 2013 the said Noticees

submitted their separate but identical replies to the SCN and stated that they are in

no way connected to any of the Promoters / Directors / Associated entities of

WPPCL. They further submitted that they are neither well versed nor have the

expertise and knowledge to deal in the capital market and upon the advice of some

well wisher they had opened demat account/s and allowed the use of the same by

third parties against monetary consideration which gave them income for some

period. They submitted that they came to know that one Mr. Paras Chaplot, a

market operator having his base in Mumbai was operating their account/s. The

above mentioned entities were advised by their well wisher broker Shri. Samir S

Shah, while Shri Pradip J Patel & Shri Nareshbhai Devabhai Patel were advised by

their well wisher broker Shri. Rakesh G. Patel, to provide their respective demat

accounts for such use. It is the case of the entities that they neither knew Shri Paras

Chaplot nor his firm / his operating mechanism directly. They also stated that none

of the transactions appearing in their demat account/s and off market transactions

have been carried out by them and they did not give any instructions for such

operations at any point in time.

Shri Amar Premchand Walmiki:-

34. Vide letter dated December 11, 2014, Shri Amar Premchand Walmiki submitted with

respect to the connection with the Walmiki Shah Group that, he may be directly or

indirectly related to a few entities, but that does not make him liable for the violation

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of PFUTP Regulations. With regards to the off market transactions he stated that the

same are genuine and permitted by law.

35. With respect to the allegation of synchronized trades, the Noticee submitted that it is

a coincidence that his few trades got synchronized. Further, the Noticee submitted

that his 40,299 shares on the buy side and 45,887 shares on the sell side during the

first investigation period and his 65000 shares on the buy side during the second

investigation period, alleged to have been synchronized were executed in the

normal course of trading and doesn't represent even 0.01% of the market volume.

These trades are not circular in nature which are executed with a clear intention to

artificially increase the volume of the scrip. The said trades in the scrip of WPPCL

are genuine and there was a change of beneficial ownership. With respect to the

allegation of manipulation of the LTP, the Noticee submitted that during the first

investigation period out of a total of 4768 trades executed by him around 3400 trades

were executed below the LTP or similar to the LTP. Therefore, it is the case of the

Noticee that the said allegation does not stand.

Shri Bharat Shantilal Thakkar:

36. Vide letter dated October 29, 2014, Shri Bharat Shantilal Thakkar replied to the SCN

and submitted that he has been debarred from buying, selling and dealing in the

securities market vide SEBI order dated February 02, 2011. Further, he submitted

that vide SEBI order dated July 08, 2013, the Noticee is still debarred from trading in

the securities market. The Noticee states that by initiating adjudication proceedings

in the matter although the earlier debarment being still in force is a "double

jeopardy". The Noticee submitted that he is not a part of the Walmiki Shah group

and he has made his own decisions to trade in the scrip based on his research and

also submitted that his trading in the scrip of WPPCL is miniscule percentage in

comparison to the total traded volume at BSE. With respect to the connection with

the Walmiki Shah Group, the Noticee submitted that Shri Bhavesh Pabari is the

nominee of his account and he has business relations with few entities and that he

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may also have certain off market transactions with few but the same has nothing to

do with his decision to trade in the shares of WPPCL and he is a regular trader in the

securities market. Further, the Noticee denies having any fund movement with Shri

Bhavesh Pabari and any other entities from the group. With respect to the allegation

of off-market transactions the Noticee submitted that the same are out of the

purview of trading mechanism and do not affect the market equilibrium.

37. With respect to the trading carried out within the group entities, the Noticee

submitted that he had bought only 59,369 shares and sold 55,369 shares which

accounted for only 0.12% and 0.11% respectively of the total market volume traded

during the relevant period. With respect to the off-market transaction, the Noticee

stated that he had carried out only one off market transaction for 4000 shares with

Mr. Manoj Bhandari which is only 0.01% of the total shares transferred in off-market

among various group entities and 0.008% of the total market volume which cannot

be treated as amounting to artificial volume.

38. The Noticee submitted that as far as his buy is concerned, his trading within the

group was for 51,745 shares (0.10%) of the total market volume and the orders

placed for less than one minute was for 51,739 shares (0.10%) of the total market

volume which is negligible and further, as alleged the synchronized trading was for

32,639 shares (0.07%) of the total market volume. Similarly, as far as his sale is

concerned, his trading within the group was for 55,012 shares (0.11%) of the total

market volume and the orders placed for less than one minute was for 51,106 shares

(0.10%) of the total market volume which is negligible and further, as alleged the

synchronized trading was for 37,053 shares (0.07%) of the total market volume. With

respect to the allegation of synchronized trades, the Noticee submitted that his seven

transactions of buy totaling to 32,639 shares which were executed on 5 trading days

out of the total 312 trading days and sell volume of 37,053 shares which accounted

for 0.07% (buy and sell) of the total traded volume were negligible in nature.

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39. With respect to the allegation of contribution to the price rise by placing orders

above the LTP, the Noticee submitted that trades executed by him had resulted in

decline in price by ` 2.55 and therefore, he has not contributed to the price rise.

Further, vide letter dated November 21, 2014, the Noticee submitted his additional

reply in the matter and reiterated the submissions made by him in his earlier reply.

Shri Bipin Jayant Thaker:

40. Vide letter dated November 20, 2014, Shri Bipin Jayant Thaker submitted that he is a

real estate dealer with small means and entered into jobbing and arbitrage in order

to earn brokerage, having three years of experience. He also submitted that he has

been debarred from buying, selling and dealing in the securities market vide SEBI

order dated February 02, 2011. Further, he stated that vide SEBI order dated July 08,

2013 the Noticee is still debarred from trading in the securities market. The Noticee

submits that he has always remained rule complaint and no questions have been

raised by the broker or the exchange for the execution of the impugned transactions

in WPPCL. The Noticee submitted that he is not a part of the Walmiki Shah group

and he has made his own decisions to trade in the scrip based on his research and

also submitted that his trading in the scrip of WPPCL is miniscule percentage in

comparison to the total traded volume at BSE. Shri Bipin Jayant Thaker also

submitted that WPPCL is not the only scrip in which he has traded as he has traded

in several other scrips, both prior to and after the period of investigation. The

Noticee states that by initiating adjudication proceedings in the matter although the

earlier debarment being still in force is a "double jeopardy".

41. Shri Bipin Jayant Thaker submitted that off market transfers are out of the purview

of the trading mechanism and do not affect the market equilibrium. Therefore, it

cannot be said that he had indulged in fraudulent or unfair trade practice, or that he

has created false or misleading appearance of trading in the market that he has

manipulated the price of the scrip or that he has entered into transactions without

the intention of performing it, as he has traded on the platform provided by the

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stock exchange and regulated by SEBI. He also submitted that he has bought only

37,953 shares and sold 32,503 shares which is only 0.08% and 0.06% respectively of

total market volume of the shares of WPPCL during the period of investigation. It is

the case of the Noticee that this could not have affected the trading in the market by

resulting in a huge rise in the trading volume. The Noticee further submitted that he

traded in the scrip of WPPCL through multiple brokers, wherein his total buy

volume was 37,953 shares amounting to 0.08% of the total market volume and his

sell volume was 32, 503 shares amounting to 0.06% of the total market volume.

42. With respect to the allegation of synchronized trades, he submitted that he was not

aware of the counter party order while placing his orders and the synchronization of

orders during the two days when he has placed many other orders is a co-incidence.

Further, he submitted that out of his total buy trades of 37,953 shares, 7,800 shares

were synchronized in nature which accounted for 0.02% of the total market volume

and similarly, out of his total sell volume of 32,503 shares, 7,496 shares were

synchronized in nature which accounted for 0.01% of the total market volume.

Therefore, it is the case of the Noticee that the said alleged volume of synchronized

trade is miniscule in comparison to market volume.

43. With respect to the allegation of off market transactions, the Noticee submitted that

he had entered into off market transactions only with Shri Chirag Jariwala on a

single occasion. He further denied indulging in any off market transactions with any

of the other group entities. With respect to the allegation of price rise the Noticee

submitted that his trades did not affect the price of the scrip of WPPCL during the

investigation period.

Shri Chirag Rajnikant Jariwala:

44. Vide letter dated November 20, 2014, Shri Chirag Rajnikant Jariwala filed his reply

to the SCN and submitted that he has been debarred from buying, selling and

dealing in the securities market vide SEBI order dated February 02, 2011. Further, he

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stated that vide SEBI order dated July 08, 2013 the Noticee is still debarred from

trading in the securities market. The Noticee states that by initiating adjudication

proceedings in the matter although the earlier debarment being still in force is a

"double jeopardy". The Noticee submitted that he is not a part of the Walmiki Shah

group and he has made his own decisions to trade in the scrip based on his research

and also submitted that his trading in the scrip of WPPCL is miniscule percentage in

comparison to the total traded volume at BSE.

45. With respect to his trading in the scrip of WPPCL, the Noticee submitted that he has

bought only 48,258 shares and sold 37,905 shares which is only 0.10% and 0.08%

respectively of total market volume of the shares of WPPCL during the period of

investigation. It is the case of the Noticee that this could not have affected the

trading in the market by resulting in a huge rise in the trading volume. With respect

to the allegation of synchronized trades the Noticee submitted that during the entire

investigation period his total buy volume was for 48258 shares which constituted for

0.10% of the market volume out of which his synchronized trades were for 18800

shares which accounted for 0.04% of the market volume. Similarly, his total sell

volume was for 37905 shares which constituted for 0.08% of the market volume out

of which the synchronized trades were for 11537 shares which accounted for 0.02%

of the market volume. The Noticee stated that it was only a co-incidence that a few

of his orders got synchronized with the group entities and that he had no

knowledge of the counter party broker or client with whom the orders were getting

matched. The said quantities were miniscule compared to the total market volume

and therefore could not have created artificial volume in the said scrip.

46. With respect to the allegation of off market transactions the Noticee admitted having

carried out an off market transaction with Shri Bipin J Thaker on a single occasion

on a single day due to erroneous transaction executed at the DP's office. further,

with respect to the price rise the Noticee submitted that his trades had slightest

impact on the price that is ` 1.15 against ` 11,300 in gross increase in price and ` 5.70

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against ` 6233.74 in gross fall in the price during the investigation period. Therefore,

it is the case of the Noticee that the said allegation cannot stand.

Shri Tushar Rameshbhai Patel:

47. Vide letter dated December 11, 2014, Shri Tushar Rameshbhai Patel submitted with



of PFUTP Regulations. With regards to the off market transactions he admitted that

he had carried out some off market transactions with certain entities. However, off

market transactions are valid mode of trade as per law and hence, the Noticee stated

that he had not made any mistake by buying and selling shares of WPPCL through

off market.




first investigation period and his 49,200 shares on the buy side and 50,000 shares on

the sell side during the second investigation period, alleged to have been

synchronized were executed in the normal course of trading and doesn't represent

even 0.02% of the market volume. The said trades in the scrip of WPPCL are genuine

and there was a change of beneficial ownership. With regards to the allegation of

self trades he submitted that he had executed one self trade for 1000 shares during

the first investigation period and the same was executed by mistake without any

intention of increasing any artificial volume. The said quantity of self trade does not

even constitute 0.001% of the market volume. The Noticee submitted that he placed

orders only at the then prevailing market price and therefore is trading in the scrip

of WPPCL did not result in any new high price or new low price.

49. With respect to the allegation of manipulation of the LTP, the Noticee submitted that

during the first investigation period out of a total of 1507 trades executed by him 477

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trades were executed above the LTP. Further, out of 1507 trades 1030 trades were

executed by the Noticee either below the LTP or similar to the LTP. Therefore, it is

the case of the Noticee that the said allegation does not stand.

Shri Shashikant Keshavlal Shah:

50. Vide letter dated December 11, 2014, Shri Shashikant Keshavlal Shah submitted with

respect to the connection with the Walmiki Shah Group that his trading account was

introduced by Shri Vipul Hiralal Shah to the broker Gogia Capital Services Ltd. in

the year 2004-05 and he was getting a commission from the broker for that. After

2005, the Noticee has not used the said account for trading purposes and that he

does not have any communication with Shri Vipul Hiralal Shah. The Noticee also

submitted that he may be directly or indirectly related to a few entities, but that

does not make him liable for the violation of PFUTP Regulations. With regards to

the off market transactions he stated that the same are genuine and permitted by

law. Off market transactions are valid mode of trade as per law and hence, the

Noticee stated that he had not made any mistake by buying and selling shares of

WPPCL through off market.

51. The Noticee submitted that during the first investigation period he had bought

208600 shares and sold 190240 shares through multiple brokers and similarly,

during the second investigation period he had bought 2428495 shares and sold

1868200 shares through multiple brokers. With respect to the allegation of

synchronized trades, the Noticee submitted that it is a coincidence that his few

trades got synchronized. Further, the Noticee submitted that his 22,800 shares on the

buy side and 5000 shares on the sell side during the first investigation period,

alleged to have been synchronized were executed in the normal course of trading

and doesn't represent even 0.05% of the market volume. The said trades in the scrip

of WPPCL are genuine and there was a change of beneficial ownership.

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during the first investigation period out of a total of 97 trades executed by him 74

trades were executed either below the LTP or similar to the LTP. Therefore, it is the

case of the Noticee that the said allegation does not stand.

Shri Manoj Bhandari :

53. Vide E-mail dated November 26, 2013, the entity submitted that he is not involved in

any shares trading which is mentioned in the SCN.

Shri Santosh Vishram Ghadshi:

54. Shri Santosh Vishram Ghadshi, vide letter dated November 21, 2013 submitted his

reply to the SCN and denied all the charges leveled against him in the SCN. He

stated that he did not execute any synchronized or self trades in the scrip of WPPCL.

Further, the Noticee vide letter dated December 11, 2014 submitted his additional

reply in the matter. With respect to the connection with the Walmiki Shah Group

that, he may be directly or indirectly related to a few entities, but that does not make

him liable for the violation of PFUTP Regulations. With regards to the off market

transactions he stated that the same are genuine and permitted by law.




first investigation period and his 16,458 shares on the buy side and 2,998 shares on

sell side during the second investigation period were alleged to have been

synchronized. However, it is the case of the Noticee that the same were executed in

the normal course of trading and doesn't represent even 0.01% of the market

volume. These trades are not circular in nature which indicates a clear intention to

artificially increase the volume of the scrip. The said trades in the scrip of WPPCL

are genuine and there was a change of beneficial ownership. With respect to the

allegation of executing self trades, the Noticee submitted that the same were

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executed in the normal course of trading without any intention of increasing

artificial volume. The said trades were executed sometimes by mistake or due to the

shift in position from one broker to another to meet pay in or pay out obligations.


during the first investigation period out of a total of 612 trades executed by him

around 1958 trades were executed above the LTP. Further, out of 612 trades, 417

trades were executed either below the LTP or similar to the LTP. Therefore, it is the

case of the Noticee that the said allegation does not stand.

Shri Avinash Bothra:

57. Vide letter dated December 03, 2013, Shri Avinash Bothra submitted that he has


order dated February 02, 2011. Additionally, vide letter dated May 05, 2014, the

Noticee submitted his detailed reply in the said matter wherein he submitted that he

held a demat account that was rarely used. the Noticee further submitted that when

he was new to the market, he was approached by one Shri. Kamlesh Nahar who had

introduced him to Shri Sunil Bhandari, who is also one of the Noticee's in the

present case. The Noticee was offered a sum of ` 10,000/- per month by Shri Sunil

Bhandari for using his trading terminal. Subsequently, the Noticee had also

convinced Shri Vishal Pare (Noticee's Colleague from the same place of work) and

Ms. Dipika Dinesh Kankari (Noticee's Wife) to lend their terminals also for a sum of

` 10,000/- every month. The Noticee received ` 10,000/- only for a period of seven

months. The Noticee was not well versed in the basics of the shares and securities

market. He further submitted that he has been debarred from buying, selling and

dealing in the securities market vide SEBI order dated February 02, 2011. The

Noticee submitted that upon trying to contact, he realized that Shri Sunil Bhandari

has absconded. Further, he submitted that vide SEBI order dated July 08, 2013 the

Noticee is still debarred from trading in the securities market. The Noticee has

terminated his job and was not involved in any of the trading that happened

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through his demat account. He has not made any personal gains out of the trading

done through his terminal. With respect to the allegation of off market transactions

executed by the Noticee along with his wife, Ms. Dpikika Dinesh Kankaria, the

Noticee submitted that he had lent his and his wife's trading terminals to Shri Sunil

Bhandari who has effected the said transactions.

Shri Bhavesh Pabari:

58. Vide letter dated November 16, 2014, Shri Bhavesh Pabari filed his reply to the SCN

and submitted that his volume of trading is very miniscule percentage of the total

trading carried out in the market during the first investigation period. He has no self

trades and the volume of synchronized trades executed by the Noticee is miniscule

and there is no trading of a single shares by the Noticee during the second

investigation period. the Noticee further submitted that he has been debarred from

buying, selling and dealing in the securities market vide SEBI order dated February

02, 2011. Further, he stated that vide SEBI order dated July 08, 2013 the Noticee is

still debarred from trading in the securities market.

59. The Noticee submitted that he is a cloth merchant and a day trader who joined the

stock market as an investor, jobber cum trader and arbitrager. The Noticee also

submitted that WPPCL is not the only scrip in which he has traded as he has traded

in several other scrips, both prior to and after the period of investigation. The

Noticee states that by initiating adjudication proceedings in the matter although the

earlier debarment being still in force is a "double jeopardy". Further, the Noticee

submitted that he is not a part of the Walmiki Shah group and with respect to the

allegation of having business relation with few entities from the Walmiki Shah

Group, the Noticee submitted that it has nothing to do with his trading decisions

and he has made his own decisions to trade in the scrip based on his research. With

respect to the connection and the relationship between the Noticees, Shri Bhavesh

Pabari submits that no relationship is found or alleged in his case.

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60. He further submitted he traded in the scrip of WPPCL through multiple brokers,

wherein his total buy volume was 1,40,370 shares amounting to 0.28% of the total

market volume and his sell volume was 2,03,000 shares which amounted for 0.41%

of the total market volume of the shares of WPPCL during the period of

investigation. Therefore, it is the case of the Noticee that this could not have affected

the trading in the market by resulting in a huge rise in the trading volume.

61. With respect to the allegation of off market transaction of 6,900 shares carried out

with Hardik M Pandya and 31, 100 shares carried out with Shri Manoj Bhandari, the

Noticee submitted that the depository participants of Shri Amar Premchand

Walmiki had wrongly transferred shares into the Noticee's demat account which

was returned to the rightful owners later. Further, the Noticee submitted that he

was surprised to know that there was a huge off market transfer of 2,91,86,301

shares of WPPCL and it was a co-incidence that he had 38,000 shares in off market in

the scrip which amounted to 0.013%.

62. The Noticee submitted that as far as his buy is concerned, his trading within the

group was for 81,015 shares (0.16%) of the total market volume and the orders

placed for less than one minute was 53,515 shares (0.11%) of the total market volume

which is negligible and further, as alleged the synchronized trading was for 25,792

shares (0.05%) of the total market volume. Similarly, as far as his sale is concerned,

his trading within the group was for 1,81,021 shares (0.36%) of the total market

volume and the orders placed for less than one minute was for 71,701 shares (0.14%)

of the total market volume which is negligible and further, as alleged the

synchronized trading was for 22,465 shares (0.04%) of the total market volume. With

respect to the allegation of contribution to the price rise by placing orders above the

LTP, the Noticee submitted that the net impact on the price of the scrip by his

trading was in negative and therefore, the said allegation is baseless. Further, vide

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letter dated November 24, 2014, the Noticee reiterated the submissions made by him

vide his earlier reply.

Ms Rekha Bhandari:

63. Vide letter dated May 08, 2014, Smt Rekha Bhandari submitted her reply to the SCN

and stated that she is an individual investor. With respect to her relationship with

the Walmiki Shah Group, the Noticee submitted she has no relationship with any of

the other Noticee except for Mr. Sunil Bhandari, who is her husband. The Noticee

submitted that she does not share any common telephone number or common

address with any of the other allegedly connected entities except with her husband,

Mr. Sunil Bhandari. The Noticee stated that she had not entered into any off-market

transactions with the group entities during the relevant period. Further, she

submitted that she has not traded heavily in the scrip of WPPCL and nor has she

traded through multiple brokers.

64. With respect to the trading done by the Walmiki Shah Group, the Noticee submitted

that out of 312 trading days during which Walmiki Shah group entities had traded

on 255 days, the buy and sale orders were placed at a time difference of less than

one minute. Total quantity traded during this period was 4633580 shares within the

group. Out of the said quantity, her buy orders were for 10008 shares and her sale

orders were for 38741 shares totaling to 1.05% of the alleged trades executed at a

time difference of less than one minute. During the pre-split period of investigation,

the Noticee submitted that 721545 shares (both buy and sell) were trades in the

nature of synchronized trades within the Walmiki Shah Group. Out of the said

trades, her synchronized trading on buy side constituted for 0 shares accounting to

0.00% of the total market volume and 0.00% of his total buy quantity. Further, her

sell side synchronized trades constituted for 12000 shares which accounted for 0.02%

of the total market volume and 5.09% of her total sell quantity. Similarly, during the

post- split period of investigation, the Noticee submitted that 1427634 shares (both

buy and sell) were trades in the nature of synchronized trades within the Walmiki

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Shah Group. Out of the said trades, her synchronized trading on buy side

constituted for 0 shares accounting to 0.00% of the total market volume and 0.00% of

her total buy quantity. Further, her sell side synchronized trades constituted for

181267 shares which accounted for 0.07% of the total market volume and 9.57% of

his total sell quantity.

65. The Noticee further submitted that she had no relationship with Arcadia or any

other broker named in the transactions who had entered into transactions on her

behalf and the said trades were executed without the knowledge as to who the

counter-party is since, the shares were traded as per market mechanism. Also, with

respect to the allegation of synchronized trades, the Noticee submitted that all her

trades were executed at the then prevailing market price and executed through the

price and order matching mechanism of the exchange. Further, the trades were

executed through one broker only. She stated that the synchronized trades entered

into by her were 1.54% of the market volume on March 14, 2009, 2.55% of the market

volume on February 11, 2010, 5.01% of the market volume on April 29, 2010 and

7.70% of the market volume on May 21, 2010 which are insignificant and could not

have created an impact on the market volume in the said scrip.

66. With respect to the allegation of impact on the price of the scrip by the Walmiki shah

group entities, the Noticee submitted that 94439 trades took place during the

investigation period out of which 50869 trades were within 51 Walmiki shah group

entities and the net impact created by the group on the price during the said period

was Rs. 5066.35. The net impact on price due to the Noticee's trades was Rs. 30.65 i.e.

0.60% of the total impact on price by the group entities.

Shri Prem Mohanlal Parikh:

67. Vide letter dated November 21, 2014 Shri Prem Mohanlal Parikh filed his reply to

the SCN and submitted that he has been debarred from buying, selling and dealing

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in the securities market vide SEBI order dated February 02, 2011. Further, he stated

that vide SEBI order dated July 08, 2013 the Noticee is still debarred from trading in

the securities market. The Noticee states that by initiating adjudication proceedings

in the matter although the earlier debarment being still in force is a "double

jeopardy". The Noticee stated that he is a day trader, jobber and arbitrager in the

stock market. The Noticee submitted that he is not a part of the Walmiki Shah

group, however, he has business relations with few of the said entities which does

not influence his trading decisions and he has made his own decisions to trade in the

scrip based on his research.

68. He stated that he had bought only 135160 shares and sold only 105315 shares which

accounted for 0.27% and 0.21% respectively, of the total market volume in the scrip

of WPPCL. Therefore, his trading in the scrip of WPPCL is miniscule percentage in

comparison to the total traded volume at BSE. He denied carrying out any off

market transactions in the scrip of WPPCL. The Noticee's trading within the group

was only 86347 shares (0.17%) on the buy side and 92779 shares (0.19%) on the sell

side of the total market volume which was negligible. Out of 86347 shares on the

buy side, the orders placed for less than one minute were for 60933 shares (0.12%) of

the total market volume and the synchronized trading was only for 12,000 shares

(0.02%) of the total market volume. Out of 92729 shares on the sell side, the orders

placed for less than one minute were for 43584 shares (0.09%) of the total market

volume and the synchronized trading was only for 9865 shares (0.02%) of the total

market volume. With respect to the allegation of price manipulation the Noticee

submitted that his trades during the investigation periods had resulted into a gross

increase of meager ` of 6.10 on net basis which is very negligible.

Shri Sunil Bhandari:

69. Vide letter dated May 08, 2014, Shri Sunil Bhandari submitted his reply to the SCN

and stated that he is an individual investor. With respect to his relationship with the

Walmiki Shah Group, the Noticee submitted he has no relationship with any of the

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other Noticee except for Ms. Rekha Bhandari, who is his wife. The Noticee

submitted that he does not share any common telephone number or common

address with any of the other allegedly connected entities except with his wife, Ms.

Rekha Bhandari. With respect to the allegation of creation of artificial volume by the

Noticee, he submitted that he has not traded heavily in the scrip of WPPCL. Further,

he stated that trading through multiple brokers is not prohibited under any Rules or

Regulations and all his trades are delivery based. The Noticee further submitted that

he has not traded on any of the days the Walmiki Shah group have allegedly traded.

With respect to the allegation of his total purchase and sale during the investigation

period where his buy order amounted to 0.67% of the total market volume and

0.42% within the group and his total sale order amounted to 0.87% of the total

market volume and 0.50% within the group, the Noticee submitted that it is clear

that he has not traded heavily and such insignificant percentage could not have

influenced the market volume.

70. With respect to the trading done by the Walmiki Shah Group, the Noticee submitted

that out of 312 trading days on which Walmiki Shah group entities had traded on

255 days, 45,99,077 shares accounting to 9.18% of the total buy and sale orders were

placed at a time difference of less than one minute. Out of the said quantity, his buy

orders were for 32135 shares and his sale orders were for 12000 shares totaling to

0.95% of the alleged trades executed at a time difference of less than one minute.

During the pre-split period of investigation, the Noticee submitted that 721545

shares (both buy and sell) were trades in the nature of synchronized trades within

the Walmiki Shah Group. Out of the said trades, his synchronized trading on buy

side constituted for 19320 shares accounting to 0.04% of the total market volume and

5.28% of his total buy quantity. Further, his sell side synchronized trades constituted

for 2990 shares which accounted for 0.01% of the total market volume and 2.71% of

his total sell quantity. Similarly, during the post- split period of investigation, the

Noticee submitted that 1427634 shares (both buy and sell) were trades in the nature

of synchronized trades within the Walmiki Shah Group. Out of the said trades, his

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synchronized trading on buy side constituted for 141366 shares accounting to 0.06%

of the total market volume and 8.32% of his total buy quantity. Further, his sell side

synchronized trades constituted for 23004 shares which accounted for 0.009% of the

total market volume and 1.03% of his total sell quantity.

71. The Noticee further submitted that he had no relationship with Arcadia or any other

broker named in the transactions who had entered into transactions on his behalf

and the said trades were executed without the knowledge as to who the counter-

party is since the shares were traded as per market mechanism. Also, with respect to

the allegation of synchronized trades, the Noticee submitted that all his trades were

executed at the then prevailing market price and executed through the price and

order matching mechanism of the exchange. Further, the trades were executed

through one broker only. His trading in the scrip of WPPCL constituted nearly

0.68% of the total purchase and 0.76% of the total sale during the investigation

period. He stated that the synchronized trades entered into by him were 0.01% of

the market volume on November 03, 2009, 0.01% of the market volume on December

04, 2009, 0.03% of the market volume on March 10, 2010 in pre-split period and

0.01% of the market volume on March 25, 2010, 0.01% of the market volume on May

04, 2010 and 0.03% of the market volume on May 21, 2010 which are insignificant

and could not have created an impact on the market volume in the said scrip.

72. With respect to the allegation of impact on the price of the scrip by the Walmiki shah

group entities, the Noticee submitted that 94439 trades took place during the

investigation period out of which 50869 trades were within 51 Walmiki shah group

entities and the net impact created by the group on the price during the said period

was Rs. 5066.35. The net impact on price due to the Noticee's trades was Rs. 14.50 i.e.

0.28% of the total impact on price by the group entities.

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Shri Kaushik Rajnikant Mehta:

73. Vide letter dated December 07, 2013, Sri Kaushik Rajnikant Mehta denied the

allegations leveled against him in the SCN. Further, vide letter dated December 09,

2014, he submitted his detailed reply in the said matter. He stated that he is not

connected to the Walmiki Shah Group. With regards to the off market transactions

he stated that the same are genuine and permitted by law. He submitted that during

the period from November 28, 2008 to March 12, 2010 which was the first

investigation period, his total buy volume in the scrip of WPPCL was 249840 shares

and his total sell volume was 157474 shares. Further, between the period from

March 15, 2010 to June 30, 2010 which was the second investigation period, his total

buy volume in the scrip of WPPCL was 2824728 shares and his sell volume was

2417569 shares. Further with respect to the synchronized trades he stated that

synchronized trades per say are not illegal. He submitted that 45490 shares on the

buy side and 22376 shares on the sell side during the first investigation period were

synchronized in nature and 39899 shares on the buy side and the 20,000 shares on

the sell side were synchronized in nature during the second investigation period. It

was only a co-incidence that his few shares were synchronized and he had no

intention to execute the same. The said trades were executed in the normal course of

trading and do not represent even 0.02% of the market volume. Also the said trades

were genuine and there was a transfer of beneficial ownership. The Noticee

submitted that he had placed orders at the then prevailing market price and hence

his trading did not result in any new high price or new low price.



around 132 trades were executed below the LTP or similar to the LTP. Further out of

157 trades in the first investigation period 25 trades were executed above the LTP.

Therefore, it is the case of the Noticee that the said allegation does not stand.

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Shri Hemant Madhusudan Sheth:

75. Vide letter dated November 19, 2014 Shri Hemant Madhusudan Sheth filed his reply

to the SCN and submitted that he has been debarred from buying, selling and

dealing in the securities market vide SEBI order dated February 02, 2011. Further, he

stated that vide SEBI order dated July 08, 2013 the Noticee is still debarred from



"double jeopardy". The Noticee stated that he is a day trader and does arbitrage

business, hence is volume is every scrip is always high. Further, with regards to

price fluctuation, he stated that he had carried out trades mostly at every price level

i.e. after price rise as well as after fall price. The Noticee submitted that he is not a

part of the Walmiki Shah group and he has made his own decisions to trade in the

scrip based on his research and also submitted that his trading in the scrip of

WPPCL is miniscule percentage in comparison to the total traded volume at BSE.

76. He stated that he had bought only 367024 shares and sold only 266825 shares which

accounted for 0.73% and 0.53% respectively, of the total market volume in the scrip

of WPPCL. With respect to the off market transactions, the Noticee admitted that he

had carried out an off market transaction of 10000 shares with Hardik M. Pandya

and the said quantity amounts to only 0.03% of the total off market transactions

carried out in the scrip of WPPCL which was a mere co-incidence. Therefore, it is the

case of the Noticee that by executing the said off market transaction he cannot be

alleged of creating artificial volume in the scrip. The Noticee's trading on the buy

side within the group was 254445 shares (0.51%) out of his total market volume and

the trades for which orders were placed for less than one minute were for 172207

shares (0.34%) of the total market volume which was negligible. Also, the alleged

synchronized trading of 77695 shares constituted for only 0.16% of the total market

volume. Further, on the sell side his trading within the group was only 213814

shares (0.43%) out of his total market volume and the trades for which orders were

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placed for less than one minute were for 123271 shares (0.25%) of the total market

volume which was negligible. Also, the alleged synchronized trading of 30,573

shares constituted for only 0.06% of the total market volume.

77. Further, vide letter dated November 21, 2014, he submitted his additional reply in

the matter and reiterated the submissions made in his earlier reply.

Shri Bharatkumar Baldev Parmar:

78. Vide letter dated December 11, 2014, Shri Bharath Kumar B Parmar submitted with



of PFUTP Regulations. With regards to the off market transactions he stated that the

same are genuine and permitted by law.



that his 13,905 shares on the buy side during the first investigation period and his

1,02,998 shares on the buy side and 1,01,040 shares on the sell side during the second

investigation period, alleged to have been synchronized were executed in the

normal course of trading and doesn't represent even 0.05% of the market volume.

The said trades in the scrip of WPPCL are genuine and there was a change of

beneficial ownership. With regards to the allegation of self trades he submitted that

the same were executed in the normal course of trading without any intention of

increasing artificial volume. He further stated that sometimes, the said trades were

executed by mistake or at times he shifted the position from one broker to another to

meet his pay in and pay out obligations. The Noticee submitted that he placed

orders only at the then prevailing market price and therefore is trading in the scrip

of WPPCL did not result in any new high price or new low price.

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around 111 trades were executed below the LTP or similar to the LTP and 32 trades

were executed above the LTP. Therefore, it is the case of the Noticee that the said

allegation does not stand.

Ms. Dipika Dinesh Kankaria:

81. Vide letter dated December 03, 2013, Ms. Dipika Dinesh Kankaria submitted that

she has been debarred from buying, selling and dealing in the securities market vide

SEBI order dated February 02, 2011. Further, she submitted that vide SEBI order

dated July 08, 2013 the Noticee is still debarred from trading in the securities market.

Additionally, vide letter dated May 05, 2014, the Noticee submitted her detailed

reply in the said matter wherein she submitted that she is the wife of Shri Avinash

Bothra and being a house wife she is not well versed with the basics of the shares

and securities market. She was asked by her husband Shri Avinash Bothra to lend

her trading terminal for a sum of ` 10,000/- per month, to which she agreed and

received the sum of ` 10,000/- only for a period of six months. She is not involved in

any of the trading that happened through her demat account and was explained the

consequences of the same upon receipt of the SEBI order dated February 02, 2014.

She also submitted that no trading was effected by the Noticee's husband Shri

Avinash Bothra and the trading terminal was lent to one Shri Sunil Bhandari who

had traded heavily through her account. The Noticee submitted that she has not

made any personal gains out of the said trading done through her terminal.

Shri Ankit Sanchaniya:

82. Vide letter dated November 21, 2014, Shri Ankit Sanchaniya filed his reply to the

SCN and submitted that he has been debarred from buying, selling and dealing in

the securities market vide SEBI order dated February 02, 2011. Further, the said

Noticee stated that vide SEBI order dated July 08, 2013 he is still debarred from

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trading in the securities market. The Noticee submitted that by initiating

adjudication proceedings in the matter although the earlier debarment being still in

force amounts to "double jeopardy". The Noticee also submitted that he is not a part

of any group and he had carried out transactions in the scrip independently. He

stated that his trading as per the SCN was negligible in quantity in comparison to

the total traded volume in the market and he has also dealt in several other scrips

prior to and after the period of investigation.

83. With respect to the trading in the scrip of WPPCL, the Noticee submitted that he had

bought only 121680 shares and sold only 114881 shares which constituted for 0.24%

and 0.23% respectively of the total market volume of WPPCL while trading through

multiple brokers during the first period of investigation which is a miniscule

percentage of the total traded volume and cannot be considered to have created

artificial volume in the said scrip. Further, with respect to the allegation of

synchronized trades, the Noticee submitted that out his buy volume of 121680

shares, the volume of synchronized trades was for 19001 shares which accounted for

0.04% of the market volume. Similarly, out his sell volume of 114881 shares, the

volume of synchronized trades was for 30050 shares which accounted for 0.06% of

the market volume. The said trades were executed at the then prevailing market

price and the quantity of the trades was miniscule if compared to the market

volume. The Noticee submitted that it was only a coincidence that his few trades got

synchronized and that he had no knowledge of the counter party broker or client

with whom the orders were matched.

84. With respect to the allegation of off-market transactions, the Noticee admitted that

he had carried out off market transactions only with Shri Rajesh Ravinarayan Hati

for 12750 shares on a single occasion on a single day which happened due to a

mistake at the DP's office. With respect to the allegation of manipulation of the LTP,

the Noticee submitted that his trades had slightest impact on the price i.e. Rs. 16.95

against Rs. 11300 in gross increase in price and Rs. 6.00 against Rs. 6233.74 in gross

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fall in price during the investigation period. Therefore, it is the case of the Noticee

that the said allegation does not stand.

85. With respect to the allegation of trading during the second investigation period, the

Noticee submitted that he had bought only 100000 shares at Rs. 26.05 on April 20,

2010 and sold only 100000 shares at Rs. 26.25 on April 21, 2010 which constituted for

0.04% and 0.04% respectively of the total market volume of WPPCL while trading

through Arcadia which is a miniscule percentage of the total traded volume and

cannot be considered to have created artificial volume in the said scrip. Further, with

respect to the allegation of synchronized trades, the Noticee submitted that out his

buy volume of 100000 shares, the volume of synchronized trades was for 50000

shares which accounted for 0.02% of the market volume. Similarly, out his sell

volume of 100000 shares, the volume of synchronized trades was for 0 shares which

accounted for 0.00% of the market volume. The Noticee submitted that it was only a

coincidence that his few trades got synchronized and that he had no knowledge of

the counter party broker or client with whom the orders were matched.

Shri Vivek Kishanpal Samant:

86. Vide letter dated November 19, 2014, Shri Vivek K Samant filed his reply to the SCN

and submitted that he is into the business of jobbing and arbitrage activities in the

market and has traded only within the permissible norms. He submitted that has


order dated February 02, 2011. By initiating adjudication proceedings in the matter

although the earlier debarment being still in force, the Noticee submitted that the

same amounts to "double jeopardy". Further, with respect to the connection with the

Walmiki Shah Group, the Noticee admitted that he is the Brother in law of Shri

Bhavesh Pabari. However, he submitted that he does not share any business

relations with Shri Bhavesh Pabari and takes his independent decisions while

trading in the securities market. The Noticee also submitted that he had traded in

other scrips including that of WPPCL during the relevant period.

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87. With respect to the trading in the scrip of WPPCL within the group entities through

multiple brokers, the Noticee submitted that he had bought 48203 shares and sold

23380 shares which constituted for 0.10% and 0.05% respectively of the total market

volume of the shares of WPPCL during the first investigation period which is

negligible and in the second investigation period, the Noticee had not traded at all.

Further, his trading within the group was for 40203 shares of the total buy which

accounted for 0.08% of the market volume and 22478 shares of the total sell

accounting to 0.04% of the market volume. Therefore, it is the case of the Noticee

that the said volume of trading was miniscule if compared to the trading volume of

the said group entities. With respect to the allegation of off-market transactions, the

Noticee admitted that he had carried out off market transactions only with Shri

Rajesh Ravinarayan Hati for 5770 shares on a single occasion out of the total off

market transfers of 29186301 shares carried out by the group.

88. Further, with respect to the allegation of synchronized trades, the Noticee submitted

that on the buy side 14459 shares constituting 0.03% of the market volume were

synchronized trades and on the sell side 8995 shares constituting 0.02% of the

market volume were synchronized trades. The said trades were executed on two

days during the whole length of investigation. The quantity of the said trades was

miniscule if compared to the market volume. Vide letter dated November 21, 2014

the Noticee submitted his additional reply in the matter and reiterated the

submissions made vide his earlier reply.

Shri Vishal Pare:

89. Vide letter dated May 05, 2014, Shri Vishal Pare submitted his reply in the matter

wherein he submitted that he was working in the same company as Shri Avinash

Bothra who requested him to lend his trading terminal for a sum of ` 10,000/- per

month, to which he agreed. The Noticee also submitted that he received the sum of `

10,000/- only for a period of six months and also learnt that Shri Avinash Botha and

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his wife had also lent their trading terminals to Shri Sunil Bhandari. The Noticee

was not well versed in the basics of the shares and securities market. He further

submitted that he has been debarred from buying, selling and dealing in the

securities market vide SEBI order dated February 02, 2011. The Noticee submitted

that upon trying to contact, he realized that Shri Sunil Bhandari has absconded.

Further, he submitted that vide SEBI order dated July 08, 2013 the Noticee is still

debarred from trading in the securities market. The Noticee has terminated his job

and was not involved in any of the trading that happened through his demat

account. He has not made any personal gains out of the trading done through his

terminal. With respect to the allegation of off market transactions executed by the

Noticee along with Ms. Priya Nahar and Shri Samir Sureshbhai Shah, the Noticee

submitted that does not know either of them. Moreover, he has been informed that

Shri Sunil Bhandari was introduced to Shri Avinash Bothra by Shri Kamlesh Nahar,

who is the husband of Ms. Priya Nahar.

Shri Manish Suresh Joshi:

90. Vide letter dated January 15, 2015, Shri Manish Suresh Joshi submitted that he had

bought 10,000 shares at the rate of `162 on July 07, 2009 and sold 10,000 shares at the

rate of ` 162.30 on July 08, 2009 and thereby earned a small profit of ` 3000. The said

transaction was delivery based and therefore the Noticee stated that the same cannot

be treated as manipulative and fraudulent in nature. Further, with respect to the

allegation of being connected with the Walmiki Shah Group, he stated that in the

past Shri Narendra Ganatra had introduced him to the stock broker Ford Brothers

Capital Services Ltd. The said entity is not alleged to be a part of the so called

Walmiki Shah Group. Also, the said 10,000 shares bought and sold in the scrip of

WPPCL was not through the said broker and he traded through another broker

namely, Bakshu Securities and Brokers Pvt. Ltd. Therefore, the Noticee denies being

connected to the said group. The Noticee further submitted that his trades in the

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scrip of WPPCL were genuine and he did not execute any synchronized trades /self

trades/off market transfers.

Shri Anand Kalu Marathe:

91. Vide letter dated December 01, 2013 Shri Anand Kalu Marathe denies the

allegations leveled against him in the SCN. Further, vide letter dated December 11,

2014, he submitted his detailed reply in the said matter. With respect to the

connection with the Walmiki Shah Group that, he denies his connection with the

said group. The Noticee submitted that he placed orders only at the then prevailing

market price and therefore is trading in the scrip of WPPCL did not result in any

new high price or new low price. He submitted that during the first investigation

period out of 1610 orders placed around 1150 orders were either below the LTP or

similar to the LTP and 483 orders were placed above the LTP. Therefore, it is the

case of the Noticee that the said allegation does not stand. With respect to the off

market transactions, the Noticee denies having executed the same in the scrip of

WPPCL.

Ms. Mala Hemant Sheth:

92. Vide letter dated August 18, 2014, Ms. Mala Hemant Sheth filed her reply to the

SCN and submitted that that she has been debarred from buying, selling and

dealing in the securities market vide SEBI order dated February 02, 2011. Further,

she stated that vide SEBI order dated July 08, 2013 the Noticee is still debarred from



"double jeopardy". The Noticee also submitted that WPPCL is not the only scrip in

which she has traded and that she has traded in several other scrips, both prior to

and after the period of investigation. Further, the Noticee submitted that she is not a

part of the Walmiki Shah group and while it is true that she is the wife of Shri

Hemant Madhusudan Sheth, she denies having any business/professional

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connection with him and confirms that she makes her own independent decision.

She denies having any fund movements with Shri Bhavesh Pabari and Shri Prem

Mohanlal Parikh.

93. With respect to the trading in the scrip of WPPCL with the group entities dealing

through multiple brokers, the Noticee that she bought and sold only 205 shares

through Arcadia which is negligible. Further, with respect to the off market transfers

the Noticee submitted that she had not carried out any off market transactions in the

scrip of WPPCL. With regards to the allegation of synchronized trades she stated

that on the buy side none of her trades were synchronized in nature and on the sell

side only 200 shares traded were synchronized which is a negligible quantity. The

sale of 200 shares had matched with Shri Vivek Kishanpal Samant.

94. Further, vide letter dated November 17 & 21, 2014, the Noticee submitted her

additional replies and stated that she had carried out delivery based transactions at

the then prevailing market price in the said scrip and reiterated the submissions

made in her reply dated August 18, 2014.

Shri Bhupesh Rathod:

95. Vide letter dated November 24, 2014 Shri Bhupesh Rathod submitted his reply to the

SCN. The Noticee submitted that he had bought 1600 shares on June 21, 2010 at Rs.

61.35 and had further bought 1600 on June 22, 2010 for Rs. 62.00 i.e. a total buy of

3200 shares. Further, the Noticee had sold 1600 shares at Rs. 62.65 earning intraday

profit of Rs. 0.65 paisa per share. It is the case of the Noticee that his trading in the

scrip of WPPCL was very negligible to have created artificial volume in the said

scrip. The Noticee had carried out delivery based transactions through SEBI

registered broker on the trading platform of the exchange at the then prevailing

market price. The Noticee also submitted that his trades should be viewed

independently as he is not connected / related to the Walmiki Shah Group. With

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respect to the allegation of executing self trades, the Noticee submitted that he had

not executed any such trades and therefore, the said charge is baseless.

Arcadia:

96. Vide letter dated November 25, 2014, Arcadia submitted its reply in the matter. The

Noticee submitted that the alleged transactions for the clients were carried out not

only through it but also through other broker trading terminals with whom Arcadia

did not have any relationship or connection. Further, upon perusal of the KYC

documents of certain clients it was observed that the date of opening of the trading

account of each client is different and further address, e-mail id. and phone number of

each client is separate, distinct and independent. The Noticee submitted that it had

no relationship with the alleged clients and has merely acted as a broker for them.

With respect to the allegation of self trades executed for the clients, the Noticee

submitted that the volume of self trades for the first investigation period was 4989

shares which accounted for 0.06% of its gross volume and 0.01% of the market

volume. Similarly, the volume of self trades for the second investigation period was

23549 shares which accounted for 0.05% of its gross volume and 0.01% of the market

volume. The said orders were placed at the then prevailing market price and the buy

and sell order quantity was different. Further, with respect to the alleged

synchronized trades, the Noticee submitted that the volume of synchronised trades

executed for the first investigation period on the buy side was 195123 shares (0.39%)

and 324248 shares (0.65%) on the sell side. Similarly, the volume of synchronised

trades executed for the second investigation period on the buy side was 170967 shares

(0.07%) and 389764 shares (0.15%) on the sell side. Therefore, it is the case of the

Noticee that the volume of synchronized trades is negligible when compared to the

market volume in the scrip of WPPCL.

97. The Noticee submitted that currently the software systems and surveillance systems

have been improved meaningfully and technology is available with established

vendors which makes it possible to track suspicious trades on a daily basis and

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appropriate warning is issued to the client/dealer/sub-broker/authorized person as

the case maybe so as to immediately stop any suspicious activities. As the nature of

trading of the clients was jobbing/arbitrage in addition to delivery based trades the

volumes of trading was higher. Further, the alleged self trades were purely

coincidental and not an outcome of any design.

FINDINGS:

98. I find from the SCN and the material available on record that during the period from

November 28, 2008 to March 12, 2010 (First Investigation period), 51 entities as

mentioned in Para No. 13 who were all connected to each other and referred to as the

Walmiki Shah group entities in the investigation report, had traded significantly in the

shares of WPPCL i.e. purchased 26436837 shares constituting for 52.78% of the total

traded volume and sold 18298802 shares constituting for 36.54% of the total traded

volume and during the period from March 15, 2010 to June 20, 2010 (Second

Investigation period), 40 entities as mentioned in Para No. 24 connected to one another

in one way or the other and dealing through multiple brokers, had purchased

116630714 shares constituting 45.81% of the total traded volume and sold 116046856

shares constituting 45.58 % of the total traded volume. I find that the relationship tables

as mentioned in paras 13 and 24 above clearly show that the said entities were

connected to each other either by way of having similar addresses/telephone numbers,

relatives, business associates and/or having fund movements between themselves.

Further, the relationship of the certain entities is established through the off market

transactions executed between them as mentioned in para 14 above. However, on

perusal of the data, I note that Shri Manish Suresh Joshi is not connected to the said

group entities.

99. Further, out of the total purchase and sale of 26436837 shares and 18298802 shares

during the first investigation period, by the 51 Walmiki Shah Group entities, 50

Walmiki Shah Group entities had traded for 9866868 shares (i.e. 19.70% of the market

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volume) accounting for 37.32 % of the total purchase by the group and 53.92% of the

total sale of the group, within themselves and 19.70% of the market volume from

within the group entities. Also, out of the total purchase and sale of 116630714 shares

and 116046856 shares during the second investigation period, by the 40 Walmiki Shah

Group entities, 38 Walmiki Shah Group entities had traded for 55914388 shares (i.e.

21.96% of the market volume) accounting for 47.94% of the total purchase by the group

and 48.18% of the total sale by the group, within themselves and 21.96% of the market

volume from within the group entities. I find from the above that, the quantity of

shares traded by the said Walmiki Shah Group entities (mentioned at para 13 & 24,

respectively) further substantiates the fact that they all had a meeting of minds and

traded in the scrip of WPPCL in collusion with each other. Therefore, I do not find any

merit in the submissions made by the Noticees that they had no relationship with each

other and had traded in the scrip of WPPCL independently, without any knowledge of

the counter party client/broker and in the ordinary course of business.

100. I also note that during the first investigation period, 41 entities out of the 51 entities as

mentioned in the table at Para No. 16 had indulged in certain synchronized trades in

the shares of WPPCL thereby, creating false and misleading appearance of trading in

the scrip. Out of the total trading of 9866868 shares within the group entities, for

4599077 shares accounting for 9.18% of the market volume, the buy and sale orders

were placed by the said entities within one minute time difference. I note that 4599077

shares constituted for 17.39% of the total purchase of Walmiki Shah Group entities and

25.13% of the total sale of the Walmiki Shah Group entities. Out of 4599077 shares, I

also note that 721545 shares accounting for 1.44% of the total market volume the buy

and sale orders were placed in synchronized manner (i.e. difference between placement

of order by buyer and seller within one minute and order rate as well as order quantity

of buy side and sale side being same). I further note that 721545 shares constituted for

2.73% of the total purchase of Walmiki Shah Group entities and 3.94% of the total sale

of the Walmiki Shah Group entities. Similarly, during the second investigation period,

23 entities out of the 40 entities mentioned in the table at Para No. 26 had indulged in

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certain synchronized trades in the shares of WPPCL thereby, creating false and

misleading appearance of trading in the scrip. Out of the total trading of 55914388

shares within the group entities, for 17217572 shares accounting for 6.76% of the market

volume the buy and sale orders were placed within one minute time difference. I also

note that 17217572 shares constituted 14.76% of the total purchase of Walmiki Shah

Group entities and 14.84% of the total sale of the Walmiki Shah Group entities. Out of

17217572 shares, I note that for 1427634 shares accounting for 0.56% of the total market

volume, the buy and sale orders were placed in synchronized manner (i.e. difference


well as order quantity of buy side and sale side being same). I additionally note that

1427634 shares constituted 1.22% of the total purchase of Walmiki Shah Group entities

and 1.23% of the total sale of the Walmiki Shah Group entities.

101. On perusal of synchronized trades as given in paras 16 & 26 above and the order and

trade log, I find that 41 entities out of the 51 entities (during the first investigation

period) and 23 entities out of the 40 entities (during the second investigation period)

had indulged in manipulative activities in the said scrip and traded in a synchronized

manner within the group without any intention of change in beneficial ownership of

shares and I do not find merit in the contention of the Noticees. Further, I find that Shri

Manish Suresh Joshi who does not form a part of the Walmiki Shah Group entities has

also executed certain trades which have matched with the group entities. However, I

find that just because the said trades got matched with the said group entities, does not

make him liable of violating the provisions of PFUTP Regulations as his individual

connection with the said group does not stand established.

102. During the first investigation period, I note that the scrip of WPPCL was traded on 312

trading days. Out of the 312 trading days, the 51 Walmiki Shah Group entities had

traded among themselves on 296 days, i.e. for 14.29% of the total number of days the

scrip was traded during the relevant period under investigation. I find that the Group

entities by trading in the scrip had contributed to the daily market volume of the scrip

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in the range from 5.63% on December 01, 2008 to 89.17% on December 19, 2008. Out of

312 Walmiki Shah Group trading days, on 255 trading days both buy and sell orders

were placed within a time difference of one minute, thereby contributing to daily

market volume ranged from 41.68% on December 02, 2008 to 52.47% on December 03,

2009. Out of 255 trading days, on 103 trading days the trades executed by the said

entities were synchronized in nature, thereby, contributing to the total market volume

which ranged from 3.59% on December 29, 2009 to 15.35% on September 14, 2009.

103. During the second investigation period, I note that the scrip of WPPCL was traded on

75 trading days. Out of 75 trading days, the 40 Walmiki Shah Group entities had traded

among themselves on all 75 days, i.e. 21.96% of the total no of days the scrip was traded

during the period under investigation. I find that the Group entities by trading in the

scrip had contributed for 44.97% to the daily market volume on April 01, 2010 and their

contribution to daily market volume ranged from 0.26% on March 16, 2010 to 44.97% on

April 01, 2010. Out of the 75 Walmiki Shah Group trading days, on 73 trading days

both buy and sell orders were placed within time difference of one minute. By

executing synchronized trades among the group entities, the Walmiki Shah Group

entities had contributed to the daily market volume ranged from 0.03% on March 16,

2010 to 25.35% on April 20, 2010.

104. In view of the above, I do not find any merit in the contentions of the Noticees that

they had entered into trades individually and that the synchronized trades indulged

into by the Noticees were merely a coincidence and were negligible in volume when

compared to the total volumes traded in the scrip of WPPCL. I find that the

manipulative trading practices indulged into by the Noticees cannot be viewed

independently and have to be viewed collectively as the overall impact of the

synchronized trading done by the said Walmiki Shah Group entities on the market in

the scrip of WPPCL was quite significant during both the investigation periods.

Further, I also find that such pattern of trading cannot be executed without prior

meeting of minds and prior understanding between the said Noticees.

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105. I find from paras 17 and 27 above that the Noticees i.e. Shri Amar Premchand

Walmiki, Shri Rajeshkumar Ravinaryan Hati, Shri Tushar Rameshbhai Patel, Shri

Manoj Bhandari, Shri Santosh Vishram Ghadshi, Ms. Manishaben Navneetlal Gandhi,

Yaminiben Maheshbhai Pandya, Hardik Maheshbhai Pandya, Shri Laxmanbhai

Dhirubhai Parmar, Ms. Shobhnaben Rameshbhai Parmar and Shri Rameshbhai

Vitthalbhai Parmar during the first investigation period and Anand Finstock Services

Ltd, Shri Amar Premchand Walmiki, Ms. Ragini Bipinbhai Thakkar, Ms. Janaki Bipin

Thakkar, Shri Samir Sureshbhai Shah, Shri Santosh Vishram Ghadshi, Shri Jignesh C.

Shah, Shri Mayank Navnitbhai Gandhi, Ms.Aditi M Gandhi, Pandya Yaminiben M,

Pandya Hardik M, Shri Bharatkumar Baldevbhai Parmar, Ms. Shobhnaben R Parmar,

Shri Rameshbhai V Parmar and Shri Vipul Hiralal Shah during the second investigation

period had entered into certain trades which were self trades in nature i.e. totally

fictitious trades wherein the entity appears on both the buy and the sell side of the

trades. I note that during the first investigation period the group entities had executed

98 self trades for a quantity of 123354 shares thereby inflating the volumes in the scrip

by 0.25% (mentioned in the table at Para 17). Similarly, during the second investigation

period the group entities had executed 102 self trades for a quantity of 1275595 shares

thereby inflating the volumes in the scrip by 0.50% (mentioned in the table at Para 27). I

further find that the said entities had executed the said fictitious trades on both the

exchanges through multiple brokers. However, Arcadia was the broker who had

executed significant number of self trades i.e. 46 self trades for 4989 shares for the

Noticees Shri Laxman Dhirubhai Parmar, Ms. Manisha Navneetlal Gandhi, Shri

Rameshbhai V Parmar and Ms. Shobhnaben R. Parmar for the first investigation period

and 13 self trades for 23549 shares for the Noticees Ms. Aditi M. Gandhi, Anand

Finstock Services Ltd., Shri Mayank Navneetbhai Gandhi, Shri Rameshbhai V. Parmar

and Pandya Yaminiben M. I do not find any merit in the submissions of Arcadia that

the said trades were executed on behalf of its clients without any knowledge of

manipulation and were only executed upon the instructions of the clients. I find that

the number of occasions on which Arcadia appeared as the broker and counter-party

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broker in the fictitious trades during both the periods under investigation was

significant and cannot be said to be an innocent act. Therefore, I find that by executing

the self trades Shri Amar Premchand Walmiki, Shri Rajeshkumar Ravinaryan Hati, Shri

Tushar Rameshbhai Patel, Shri Manoj Bhandari, Shri Santosh Vishram Ghadshi, Ms.

Manishaben Navneetlal Gandhi, Shri Laxmanbhai Dhirubhai Parmar, Ms. Shobhnaben

Rameshbhai Parmar, Shri Rameshbhai Vitthalbhai Parmar, Anand Finstock Services

Ltd, Ms. Ragini Bipinbhai Thakkar, Ms. Janaki Bipin Thakkar, Shri Samir Sureshbhai

Shah, Shri Jignesh C. Shah, Shri Mayank Navnitbhai Gandhi, Ms.Aditi M Gandhi,

Pandya Yaminiben M, Pandya Hardik M, Shri Bharatkumar Baldevbhai Parmar and

Shri Vipul Hiralal Shah had further created a false market and gave a misleading

appearance of trading in the scrip and Arcadia had not acted in accordance with the

code of conduct as prescribed under the Broker Regulations.

106. I find that during the first investigation period the price of the scrip opened at ` 9.54

and touched a high of ` 510.00 i.e. there was increase of ` 500.46. I further find that on

118 trading days and 974 occasions a new high price was discovered. Out of 974

occasions on 673 occasions (i.e on 100 days out of 118 days), I find that Shri Santosh

Deshmal Oswal, Shri Pradeepkumar Jashbhai Patel, Shri Amar Premchand Walmiki,

Ms.Ragini Bipinbhai Thakkar, Shri Navneetlal Jeevanlal Gandhi, Shri Rajesh

Ravinarayan Hati, Shri Tushar Rameshbhai Patel, Shri Samir Shah, Shri Manoj

Bhandari, Shri Samirkumar Kanubhai Patel, Shri Jignesh C. Shah, Shri Shalin

Kiritkumar Parikh, Shri Bipinkumar Gandhi, Shri Mayank Navnitbhai Gandhi,

Ms.Aditi M Gandhi, Shri Anand Kalu Marathe, Ms.Rekha Bhandari, Shri Sunil

Bhandari, Shri Ashokkumar Bhikhalal Parmar, Ms. Manisha Navneetlal Gandhi,

Pandya Yaminiben M, Pandya Hardik M, Shri Dhirubhai Antolbhai Parmar, Shri

Laxman Dhirubhai Parmar, Ms.Shobhnaben R Parmar, Shri Rameshbhai V Parmar, Ms.

Amisha Samir Patel and Shri Ankit Sanchaniya had majorly contributed to increase the

price. On perusal of Annexure I to the SCN, I find that the above mentioned entities

had traded significantly in the scrip of WPPCl by plcaing orders at a price higher than

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the market price, thereby, creating a new high price and contributing to the artificial

increase in the price of the scrip.

107. Further, I find that during the second investigation period the price of the scrip

opened at `34.00 and touched a high of ` 74.50 i.e. there was increase of ` 40.50. I note

that on 18 trading days and 291 occasions a new high price was discovered. Further, I

find that out of 291 occasions on 195 occasions (on 17 days out of 18 days), Shri

Bharatkumar Baldevbhai Parmar, Shri Kaushik Rajnikant Mehta, Anand Finstock

Services Ltd, Shri Ashokkumar Bhikhalal Parmar, Shri Santosh Deshmal Oswal, Shri

Mayank Navnitbhai Gandhi, Hardik Maheshbhai Pandya, Ms. Shobhnaben

Rameshbhai Parmar, Shri Laxmanbhai Dhirubhai Parmar, Ms. Vaishali Ashvinbhai

Parmar, Shri Vipul Hiralal Shah and Ms. Aditi Mayank Gandhi had contributed to

increase in the price by ` 29.30 (out of `40.50). I find that the contribution of the said

Noticees in the price rise was quiet significant during the relevant period and the same

is sufficient to establish that the price of the scrip increased because of placing of the

orders by the said Noticees in a manipulative manner. Therefore, I do not find merit in

the submissions made by the said Noticees and conclude that the trading done by them

during both the investigation periods was in violation of Regulation 4(2)(e) of the

PFUTP Regulations.

108. I find from the LTP analysis for the first investigation period that out of 94439 trades

executed during the said period, 24192 trades were placed at a price less than the LTP

(Summation TP-LTP= ` -16711.74), 46028 trades were placed at a price equal to the LTP

and 24218 trades were placed at a price greater than LTP (Summation TP-LTP= `

17201.65). I further find that out of 94439 trades, the 51 Walmiki Shah Group entities

entered into 50869 buy transactions while dealing through multiple brokers.

Additionally, I find that out of 50869 trades, 11174 trades were placed at a price less

than LTP (contributing a gross fall in price by ` - 6233.74), 24654 trades were placed at a

price equal to LTP and 15040 trades were placed at a price greater than LTP

(contributing a gross increasing in price by ` 11300.09). From the buy orders of the

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above clients, whose orders made a significant net impact (i.e. more than 100), and by

analyzing the sell orders available at that instance, I find that in respect of certain trades

as mentioned in the table at Para 22 above, the buy side and sell side clients belonged to

the Walmiki Shah group. Further, in these trades, I find that first the sell order rates

were placed above the LTP, then the buy orders were placed above these sell orders

rates and the trade was executed at the prevailing sell order rate. Therefore, I conclude

that these clients by entering into trades among themselves and also by placing the buy

orders at rates higher than the best available sell order rates increased the price of the

scrip above the LTP thereby, affected the equilibrium at the platform of the exchange in

the scrip and violated Regulation 4(2)(e) of the PFUTP Regulations.

109. I also note that certain Noticees have stated in their submissions that they have been

restrained from trading in the securities market vide SEBI order dated February 02,

2011 which was confirmed by SEBI on July 08, 2011 and the said debarment order is

still in force. Further, I also note that these Noticees have submitted that the present

adjudication proceedings results in double jeopardy. At this juncture, I rely on the

judgment of the Hon'ble High Court of Bombay in the case of SEBI VS. Cabot

International Capital Corporation (2004) wherein it was observed that "the adjudication

for imposition of penalty by Adjudication Officer, after due inquiry, is neither a criminal nor a

quasi criminal proceeding. The penalty leviable under this Chapter or under these sections, is

penalty in cases of default or failure of statutory obligation or in other words, breach of civil

obligation. The provisions and scheme of penalty under SEBI Act and the regulations, there is

no element of criminal offence or punishment as contemplated under criminal proceedings." In

view of this, I do not find merit in the contention of the Noticees.

110. Also, I note that some of the Noticees had requested for a copy of the entire

investigation report and certain documents which were relied upon while the issuing

the SCN in the matter. Here, I note that the relevant extract of the investigation report

formed part of the SCN. I further note that the following information was provided to

the Noticees along with the SCN in a Compact Disk (CD).

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a) Order appointing the Adjudicating Officer (Annexure 1)

For the first investigation period (November 28, 2008 to March 12, 2010):

b) Details of purchase and sale of 51 Walmiki Shah Group entities and sale of 31

entities dealing through multiple brokers (Annexures A and B)

c) The details of the 51 Walmiki Shah Group entities along with their connection

with each other (Table 1).

d) Details of the off - market transfers executed by the Walmiki Shah Group entities

(Annexure EE)

e) The trading details of 51 Walmiki Shah Group entities (AnnexureC)

f) Trade and Order details of trading within the Walmiki Shah Group entities

(Annexure D)

g) Trading among 50 entities (Annexure E)

h) Trade and Order details of the synchronized trades (Annexure F)

i) Details of Trade and Order log containing self trades (Annexure G)

j) Details of the day wise volume contribution to the total traded volume

(Annexure H)

k) The details of the new high price analysis (Annexure -I)

For the second investigation period (March 15, 2010 to June 30, 2010):

l) Details of purchase and sale of 40 Walmiki Shah Group entities s dealing through

multiple brokers (Annexures A and B)

m) The details of the 40 Walmiki Shah Group entities along with their connection

with each other (Table 1).

n) The trading details of 40 Walmiki Shah Group entities (AnnexureC)

o) Trade and Order details of trading within the Walmiki Shah Group entities

(Annexure D)

p) Trading among 38 entities (Annexure E)

q) Trade and Order details of the synchronized trades (Annexure F)

r) Details of Trade and Order log containing self trades (Annexure G)

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s) Details of the day wise volume contribution to the total traded volume

(Annexure H)

Therefore, I find all the relevant material in the present matter was already provided

to the Noticees.

111. From the foregoing, I find that during both the investigation periods, Noticees listed

out in Para No. 2, excluding Shri Anand Kalu Marathe (who did not execute any

synchronized/self trades) and Shri Manish Suresh Joshi (who is not connected with

the Walimiki Shah Group), by trading amongst themselves indulged in synchronized

trading on numerous occasions, resulting in no change of beneficial ownership

thereby, creating artificial volume in the scrip of WPPCL which gave a false and

misleading appearance of trading in the said scrip. Further, I also find that Shri Amar

Premchand Walmiki, Shri Rajeshkumar Ravinaryan Hati, Shri Tushar Rameshbhai

Patel, Shri Manoj Bhandari, Shri Santosh Vishram Ghadshi, Ms. Manishaben

Navneetlal Gandhi, Shri Laxmanbhai Dhirubhai Parmar, Ms. Shobhnaben

Rameshbhai Parmar, Shri Rameshbhai Vitthalbhai Parmar, Anand Finstock Services

Ltd, Ms. Ragini Bipinbhai Thakkar, Ms. Janaki Bipin Thakkar, Shri Samir Sureshbhai

Shah, Shri Jignesh C. Shah, Shri Mayank Navnitbhai Gandhi, Ms.Aditi M Gandhi,

Pandya Yaminiben M, Pandya Hardik M, Shri Bharatkumar Baldevbhai Parmar and

Shri Vipul Hiralal Shah had entered into self trades and inflated the volumes in the

market thereby giving a false and misleading appearance of trading in the scrip of

WPPCL during the both the investigation periods.

112. Also, the Noticees listed at Paras Nos. 106, 107 and 108 by executing trades during the

first and second investigation periods (which created new high price and affected the

LTP) manipulated the price of the scrip of WPPCL and violated the provisions of

Regulation 4(2)(e) of the PFUTP Regulations. Therefore, I conclude that the said

Noticees have violated provisions of Regulation 3 (a), (b), (c), (d), 4 (1) and 4 (2) (a),

(b) & (g) of the PFUTP Regulations and additionally, Shri Amar Premchand Walmiki,

Shri Navneetlal Jeevanlal Gandhi, Shri Tushar Rameshbhai Patel, Shri Santhosh

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Vishram Ghadshi, Shalin Kiritkumar Parikh, Shri Nareshbhai Devabhai Patel, Shri

Hemant Madhusudan Sheth, Shri Manisha Navneetlal Gandhi, Pandya Yaminiben M,

Pandya Hardik M, Shri Dhirubhai Antolbhai Parmar, Shri Laxman Dhirubhai Parmar,

Ms. Shobhnaben R Parmar, Ms. Amisha Samir Patel, Shri Santosh Deshmal Oswal,

Shri Pradeepkumar Jasbhai Patel, Ms. Ragini Bipinbhai Thakker, Shri Rajesh

Ravinarayan Hati, Shri Samir Sureshbhai Shah, Shri Manoj Bhandari, Shri

Samirkumar Kanubhai Patel, Shri Jignesh C Shah, Shri Bipinkumar Gandhi, Shri

Mayank Navneetbhai Gandhi, Ms. Aditi Mayank Gandhi, Shri Anand Kalu Marathe,

Ms. Rekha Bhandari, Shri Sunil Bhandari, Shri Ashokkumar Bhikalal Parmar, Shri

Rameshbhai V Parmar, Shri Ankit Sanchaniya, Shri Bharathkumar Baldevbhai

Parmar, Shri Kanushik Rajnikant Mehta, Anand Finstock Services Ltd., Ms. Vaishali

Ashvinbhai Parmar and Vipul Hiralal Shah have also violated Regulation 4(2)(e) of

the PFUTP Regulations thus, liable for monetary penalty as prescribed under Section

15 HA of the Act which reads as under:

Penalty for fraudulent and unfair trade practices.

15HA. If any person indulges in fraudulent and unfair trade practices relating to

securities, he shall be liable to a penalty of twenty-five crore rupees or three times the

amount of profits made out of such practices, whichever is higher.

113. I note that the Code of Conduct prescribed under the Broker Regulations mandates

that a stock broker shall maintain high standards of integrity, promptitude and

fairness and shall act with due skill, care and diligence in the conduct of his business.

The code further mandates that a broker shall not, inter alia, indulge in manipulative

transactions with a view to distort the market equilibrium. Therefore, I conclude that

Arcadia by executing fictitious trades, in the nature of self and synchronized trades,

on behalf of its clients has violated the provisions as mentioned under Clause A (1),

(2) & (3) of the Code of Conduct specified under Schedule II read with Regulation 7 of

the Broker Regulations thus, liable for monetary penalty as prescribed under Section

15 HB of the Act which reads as under:

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Penalty for contravention where no separate penalty has been provided

15HB. Whoever fails to comply with any provisions of this Act, the rules or the

regulations made or directions issued by the Board thereunder for which no separate

penalty has been provided, shall be liable to a penalty which may extend to one crore

rupees.

114. Here, it is important to refer to the observations of the Hon’ble Supreme Court of

India in the matter of SEBI v. Shri Ram Mutual Fund [2006] 68 SCL 216(SC) wherein,

the Hon'ble Court, inter alia, held: “In our considered opinion, penalty is attracted as soon

as the contravention of statutory obligation as contemplated by the Act and the Regulations is

established and hence the intention of the parties committing such violation becomes wholly

irrelevant....”

115. While determining the quantum of penalty under Section 15 HA and 15 HB of the

Act, it is important to consider the factors stipulated in Section 15J of Act, which reads

as under:

15J - Factors to be taken into account by the adjudicating officer:

While adjudging quantum of penalty under section 15-I, the adjudicating officer shall have due

regard to the following factors, namely:-

(a) the amount of disproportionate gain or unfair advantage, wherever quantifiable, made as a

result of the default;

b) the amount of loss caused to an investor or group of investors as a result of the default;

(c) the repetitive nature of the default.

116. I observe, from the material available on record, that it is not possible to quantify, any

gain or unfair advantage accrued to the Noticees or the extent of loss suffered by the

investors as a result of the defaults of the Noticees. However, I find that the defaults

are repetitive in nature. Further, the Noticees have traded in the scrip in a manner

meant to create artificial volumes and liquidity which are important criterions

capable of misleading the investors. In fact, liquidity/volumes in a particular scrip

raise the issue of 'demand' in the securities market. The greater the liquidity, the

higher the investors' attraction towards investing in that scrip. Hence, any investor

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could have been carried away by the unusual fluctuations in the volumes and

induced into investing in the said scrip. Besides, this kind of activity seriously affects

the normal price discovery mechanism on the stock exchange platform. People who

indulge in manipulative, fraudulent and deceptive transactions should be suitably

penalized for the said acts of omissions and commissions.

ORDER

117. In view of the above, after considering all the facts and circumstances of the case and

exercising the powers conferred upon me under section 15-I (2) of the Act read with

Rule 5 of the said Rules, I conclude that the proceedings against Shri Kishore

Chauhan stand abated. Also, I find that the charges leveled against Shri Manish

Suresh Joshi do not stand established. Further, I hereby impose the following

monetary penalties on the other Noticees:

S.No Names of the Noticees Penal provisions as per the Act.

Penalty Amount In (`̀̀̀)

1 Shri Santosh Deshmal Oswal Section 15 HA 6,00,000

2 Shri Pradeepkumar Jashbhai Patel Section 15 HA 6,00,000

3 Shri Amar Premchand Walmiki Section 15 HA 6,00,000

4 Shri Bharat Shantilal Thakkar Section 15 HA 5,00,000

5 Ms. Ragini Bipinbhai Thakkar Section 15 HA 6,00,000

6 Shri Bipin Jayant Thakkar Section 15 HA 5,00,000

7 Shri Navneetlal Jeevanlal Gandhi Section 15 HA 6,00,000

8 Shri Rajesh Ravinarayan Hati Section 15 HA 6,00,000

9 Shri Chraj Rajnikant Jariwala Section 15 HA 5,00,000

10 Shri Tushar Rameshbhai Patel Section 15 HA 6,00,000

11 Shri Shashikant Keshavlal Shah Section 15 HA 5,00,000

12 Shri Samir Sureshbhai Shah Section 15 HA 6,00,000

13 Shri Manoj Bhandari Section 15 HA 6,00,000

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14 Shri Samirkumar Kanubhai Patel Section 15 HA 6,00,000

15 Shri Santosh Vishram Ghadshi Section 15 HA 6,00,000

16 Shri Jignesh C. Shah Section 15 HA 6,00,000

17 Shri Shalin Kirtikumar Parikh Section 15 HA 6,00,000

18 Shri Mayank Navneetbhai Gandhi Section 15 HA 6,00,000

19 Ms. Aditi M Gandhi Section 15 HA 6,00,000

20 Shri Avinash Bothra Section 15 HA 5,00,000

21 Shri Bhavesh Pabari Section 15 HA 5,00,000

22 Ms. Rekha Bhandari Section 15 HA 6,00,000

23 Shri Prem Mohanlal Parikh Section 15 HA 5,00,000

24 Shri Sunil Bhandari Section 15 HA 6,00,000

25 Shri Nareshbhai Devbhai Patel Section 15 HA 6,00,000

26 Shri Kaushik Rajnikant Mehta Section 15 HA 6,00,000

27 Shri Hemant Madhusudan Sheth Section 15 HA 6,00,000

28 Shri Ashokkumar Bhikhalal Parmar Section 15 HA 6,00,000

29 Ms. Manisha Navneetlal Gandhi Section 15 HA 6,00,000

30 Pandya Yaminiben M Section 15 HA 6,00,000

31 Pandya Hardik M Section 15 HA 6,00,000

32 Shri Bharatkumar Baldevbhai

Parmar

Section 15 HA 6,00,000

33 Shri Laxman Dhirubhai Parmar Section 15 HA 6,00,000

34 Ms. Shobhnaben R Parmar Section 15 HA 6,00,000

35 Shri Rameshbhai V Parmar Section 15 HA 6,00,000

36 Ms. Amisha Samir Patel Section 15 HA 6,00,000

37 Shri Vipul Hiralal Shah Section 15 HA 6,00,000

38 Ms. Dipika Dinesh Kankaria Section 15 HA 5,00,000

39 Shri Shreedhar Yellaiah Kodam Section 15 HA 5,00,000

40 Shri Ankit Sanchaniya Section 15 HA 6,00,000

41 Shri Vivek Kishanpal Samant Section 15 HA 5,00,000

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42 Anand Finstock Services Limited Section 15 HA 6,00,000

43 Shri Vishal Pare Section 15 HA 5,00,000

44 Shri Pannalal Ukaram Prajapati Section 15 HA 5,00,000

45 Ms. Vaishali Ashvinbhai Parmar Section 15 HA 6,00,000

46 Samir Sureshbhai Shah (HUF) Section 15 HA 5,00,000

47 Spectrum Chemicals Private Limited Section 15 HA 5,00,000

48 Ms. Janaki Bipin Thakkar Section 15 HA 5,00,000

49 Shri Rakesh Gokulbhai Patel Section 15 HA 5,00,000

50 Shri Bipin Kumar Gandhi Section 15 HA 6,00,000

51 Shri Anand Kalu Marathe Section 15 HA 2,00,000

52 Shri Dhirubhai Antolbhai Parmar Section 15 HA 6,00,000

53 Ms. Mala Hemant Sheth Section 15 HA 2,00,000

54 Shri Bhupesh Rathod Section 15 HA 2,00,000

55 Shri Jayvishal Dilipsingh Barot Section 15 HA 5,00,000

56 Arcadia Shares & Stock Brokers Section 15 HB 2,00,000

TOTAL

3,03,00,000/- (Rupees

Three Crore Three

Lakh Only)

118. In my view the penalties imposed on the Noticees are commensurate with the

defaults committed by them.

119. The penalty amount as mentioned above shall be paid by the Noticees through duly

crossed demand drafts drawn in favour of “SEBI – Penalties Remittable to

Government of India” and payable at Mumbai, within 45 days of receipt of this order.

The said demand drafts shall be forwarded to the Division Chief, Enforcement

Department - DRA-II, Securities and Exchange Board of India, SEBI Bhavan, Plot No.

C4-A, ‘G’ Block, Bandra Kurla Complex, Bandra (E), Mumbai – 400 051.

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120. In terms of the Rule 6 of the Rules, copies of this order are sent to the Noticees and

also to Securities and Exchange Board of India.

Date: Februay 16, 2015 D. SURA REDDY

Place: Mumbai GENERAL MANAGER &

ADJUDICATING OFFICER

before the adjudicating officer securities and exchange ... · of wppcl and into the possible...

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