TMI Blog2019 (10) TMI 1051X X X X Extracts X X X X X X X X Extracts X X X X ..... nd 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. - Appeal No.166 of 2017 With Appeal No.190 of 2017 - - - Dated:- 7-8-2019 - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... om the platform of BSE Ltd (hereinafter referred to as BSE ) and 2,58,473 shares from the platform of National Stock Exchange of India Ltd. (hereinafter referred to as NSE ). Thereafter, during the rest of the period they had purchased shares in miniscule quantity and in fact had sold those shares which included intra group trades amongst the group. There were also sychronised deals and self trades between the groups on various occasions as noted in the order from para 12 to 21 of the impugned order. 3. The defense of Mr. Sudhir Jhunjhunwala and Mrs. Madhu Jhunjhunwala was that one Mr. Sanjay Talati was the key person who had transferred money and shares to his and his wife s demat account only for collateral and margin purposes for the shares to be purchased from the market. They were only financiers to the entire deal in which they had incurred huge losses and, therefore, a suit is filed in the Hon ble Bombay High Court against the recovery of losses. The couple further informed SEBI that Mr. Sanjay Talati and appellant Mr. G. Moorthi were interested in only in rigging the price of the shares of GCL. When the couple found this intention they stop ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ade evident from the analysis, she was close relative of Mr. Sudhir and Mrs. Madhu Jhunjhunwala. In view of this fact, the impugned order came to be passed against her. So far as the appellant Mr. G. Moorthy is concerned the Adjudicating Officer found that the appellant had on his own admission had transferred three lakh shares of GCL and also an amount of ₹ 5.83 cores to Mr. Sudhir and Mrs. Madhu Jhunjhunwala. The submission of appellant Mr. G. Moorthy that he transferred shares in the account of Mr. Sudhir and Mrs. Madhu Jhunjhunwala to arrange a good buyer for the bulk placement of shares and also transferring substantial amount would according to the Adjudicating Officer show that it was not a normal transaction of transfer of shares. It was a transfer without any consideration and not a genuine transfer and as such finding that all these activities were carried out for rigging the price the Adjudicating Officer imposed the penalty. Hence the present appeals. 5. We have heard Mr. Shashikant D. Chandak, Advocate assisted by Ms. Kanchan S. Chandak, Mr. Vinay Chauhan, Mr. Nikhil Shah and Mr. Mit Shroff, Advocates for the Appellants and Mr. Kar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sed 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. b. 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 as under: Buyer Seller Moorthi Madhu Ritika Sudhir Total Madhu 24999 52226 77225 Ritika ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 22,133 30,165 1 8,696 39.29% 57.66% 20-Mar-07 96 18,255 17,233 1 1,256 6.88% 14.58% 21-Mar-07 222 31,481 39,023 1 335 1.06% 1.72% 22-Mar-07 140 54,226 87,744 7 33,420 61.63% 76.18% 23-Mar-07 207 46,209 62,182 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nc trades as % of clients Buy + Sell Total no. of trades Total traded quantity Day's Buy + Sell No. of Sync trades Sync trades (No. of shares) 20-Mar-07 55 19,641 36,202 5 5,000 25.46% 27.62% 21-Mar-07 112 12,634 14,043 1 2,500 19.79% 35.60% 22-Mar-07 77 44,285 86,000 9 43,000 97.10% 100.00% 23-Mar-07 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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