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2019 (10) TMI 1051 - AT - SEBIOff market transfer of shares - intra group transfers - Violation of the provisions of Securities and Exchange Board of India (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003 ( ‘PFUTP Regulations’) - Penalty imposed - HELD THAT:- So far as the appellant Mr. G. Moorthi is concerned his own submission would show that he had transferred substantive shares to Mr. Sudhir and Mrs. Madhu Jhunjhunwala off market without any consideration for management of portfolio by promising a commission of 15 percent. The record would show that Mr. Sudhir and Mrs. Madhu Jhunjhunwala had another story to tell. Be that as it may. It is clear from the records that the share were not transferred with an intention to transfer the beneficial ownership. The record would show that during the same period Mr. Sudhir and Mrs. Madhu Jhunjhunwala as well as the present appellant Ritika had purchased bulk of shares from the platform of BSE and NSE and thereafter the same were sold in different quantities. More notably the percentage of trading of this group would show that they have contributed substantially in the buying and selling during that period i.e.8,34,472. Similarly, the sale was also of the substantive proportion i.e. 14,55,160. Most important factor is the intra group transfers between appellant Ritika and Mr. Sudhir and Mrs. Madhu Jhunjhunwala on BSE platform, which occurred within less than a minute which has been highlighted by the Adjudicating Officer Analysis of the trading of Mr. Sudhir and Mrs. Madhu Jhunjhunwala with appellant Ritika would clearly show that it cannot just be a coincidence that exact quantity of buy and sell would match within a time difference of less than one minute. The trades also points toward the one and only fact that the trades entered into by the appellant alongwith other group members was not a genuine transfer. In that view of the matter, the order of the Adjudicating Officer in this regard requires no interference. Both the appeals are thereby dismissed with no order as to costs.
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