Home Case Index All Cases Companies Law Companies Law + AT Companies Law - 2013 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (12) TMI 399 - SECURITIES APPELLATE TRIBUNAL, MUMBAIProhibition of manipulative, fraudulent and unfair trade practices as per Regulation 4, read with regulation 3, of the SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 2003 - SEBI found violation of provisions of FUTP Regulations which suggested certain trading activity on part of appellant along with others with intention of creating artificial volumes so as to give market players a false impression regarding liquidity in scrip – Held that:- The shares were transferred to the applicant and other noticees from the accounts of promoters and not from Dena Bank - No evidence of the payment has been shown by the appellant - No document is brought on record to substantiate the story regarding the payment for these 20,000 shares. the appellant had kept the shares of the company in fact in his demat account without any transaction whatsoever in the said shares which were stated to be pledged for the loan in question - The role of the appellant was confined to extending loan facility to MK and no more - He was not found to have been engaged at all in any dealing in the shares of the ASL in any manner - He had no role in the circular/manipulative trades highlighted by the learned WTM in the impugned order for the simple reason that he did not trade in the shares - The role of the appellant in that case was that of a mere financier - He kept the shares of ASL in his demat account only as a security for the loan provided by him to MK. In this background, his appeal was allowed by this Tribunal - the appellant has admittedly received 20,000 shares in his demat account on January 19, 2009 - This fact clearly proves a nexus between the appellant and the promoter group – Decided against Appellant.
|