Adjudication order in respect of 9 entities in the matter of Maa Jagdambe Tradelinks Limited

BEFORE THE ADJUDICATING OFFICER 
SECURITIES AND EXCHANGE BOARD OF INDIA
[ADJUDICATION ORDER NO. Order/AA/JR/2020-21/9542-9550]

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. Anirudh Parashar (PAN: APQPP2807P)
2. Rakesh Ramsingh Saini (PAN: BOGPS9885G)
3. Akash Sukhdev Swami (PAN: BBHPS7069A)
4. Santoshkumar Satyanarayan Podar (PAN: AGOPP8524G)
5. Kamal M Tibrewala (PAN: ADLPT4699N)
6. Subhash D Bhatiwada (PAN: AGJPB5949G)
7. Avinash Kumar Ardawatia (PAN: ALUPA9896M)
8. Surendra Kumar Tiwari (PAN: ACVPT4865H)
9. Sanjay Kumar Poddar HUF (PAN: AANHS4842P)

In the matter of Maa Jagdambe Tradelinks Ltd.

BACKGROUND OF THE CASE

1. The Securities and Exchange Board of India (hereinafter referred to as ‘SEBI’) initiated investigation in the scrip of Maa Jagdambe Tradelinks Ltd. (hereinafter referred to as “company/ MJTL”) regarding allegations of generation of bogus Long Term Capital Gains (LTCG) in the scrip of MJTL during the period May 1, 2013 to July 31, 2015 (hereinafter referred to as “investigation period”). It was observed that Anirudh Parashar (hereinafter referred to as “Noticee 1”), Rakesh Ramsimgh Saini (hereinafter referred to as “Noticee 2”), Akash Sukhdev Swami (hereinafter referred to as “Noticee 3”), Santoshkumar Satyanarayan Podar (hereinafter referred to as “Noticee 4”), Kamal M Tibrewala (hereinafter referred to as “Noticee 5”), Subhash D Bhatiwada (hereinafter referred to as “Noticee 6”), Avinash Kumar Ardwatia (hereinafter referred to as “Noticee 7”), Surendra Kumar Tiwari (hereinafter referred to as “Noticee 8”) and Sanjay Kumar Poddar HUF (hereinafter referred to as “Noticee 9”) (collectively known as “Noticees”) had indulged in fraudulent scheme of manipulation in the scrip of MJTL and allegedly violated regulation 3(a), (b), (c), (d) and regulation 4(1), 4(2)(a) and (e) of SEBI (Prohibition of Fraudulent and Unfair Trade Practices relation to securities market), 2003 (hereinafter referred to as the ‘PFUTP Regulations’)

APPOINTMENT OF ADJUDICATING OFFICER

2. SEBI vide communique dated March 28, 2018 appointed Shri Suresh B Menon as the Adjudicating Officer under section 15 I of Securities Exchange Board of India Act, 1992 (hereinafter referred to as “SEBI Act”) read with Rule 3 of SEBI (Procedure for Holding Inquiry and Imposing Penalties) Rules, 1995 (hereinafter referred to as “AO Rules”) to inquire into and adjudge the aforesaid allegations under section 15HA of the SEBI Act. Pursuant to the transfer of Shri Suresh B Menon to another department, the undersigned was appointed as the Adjudicating Officer which was communicated vide communique dated March 25, 2019.

SHOW CAUSE NOTICE, REPLY AND HEARING

3. A Show Cause Notice dated July 31, 2018 (hereinafter referred to as ‘SCN’) was issued to the Noticees by the erstwhile AO under Rule 4(1) of the AO Rules to show-cause as to why an inquiry should not be initiated against the Noticee and penalty not be imposed upon them under Section 15HA of the SEBI Act for the alleged violation of the Regulation 3(a), (b), (c), (d), 4(1) and 4(2)(a) and (e) of PFUTP Regulations. SCNs were issued to all the Noticees.

4. It is alleged that the Noticee 1 to 6 are well connected with each other. In this regard, it is alleged that MJTL had transferred `50 Lakhs to Ridhi Hi-Fashion Pvt. Ltd. (hereinafter referred to as “Ridhi”) on July 26, 2013 and `1.85 crore to Goldmine Fintrade Ltd on July 23, 2013. It is observed that one Mr. Pawan Kumar Chaudhary was a common director between MJTL and Ridhi during the period February 14, 2014 to October 01, 2014. Further, Subhash D Bhatiwada (Noticee 6) is a director of Goldmine Fintrade Ltd. since 2007. It is also observed that Santosh S Poddar (Noticee 4) and Kamal M Tibrewala (Noticee 5) are the directors of Ridhi. It is also observed that Ridhi is connected with Sumangal Commodity Pvt. Ltd and Sumangal Shares and Securities Pvt. Ltd by way of a common director. Anirudh Parashar (Noticee 1) is a director of Sumangal Commodities Pvt. Ltd. Further Rakesh Ramsingh Saini (Noticee 2) and Akash Sukhdev Swami (Noticee 3) were the former employees of Sumangal Commodities Pvt. Ltd. and Sumangal Shares and Securities Pvt. Ltd.

5. It is observed that the whole investigation period is divided in 3 patches:

i. Period from May 13, 2013 to January 08, 2014(pre-split) has been referred to as patch-I during which the price of the scrip open at `8.40 and closed at a high of `162.80.

ii. Period from January 09, 2014 to May 19, 2014(post-split) has been referred to as patch-II during which the price of the scrip open at `33.20 and reached a high of `99.00 on May 19, 2014 before closing at ` 98.40 on the same day.

iii. Period from May 20, 2014 to July 31, 2015 has been referred to as patch-III during which the price of the scrip open at `98.05 and reached a high of `107.80 on March 05, 2015 and a low of `77.45 on May 04, 2015 before closing at `80.30 on July 31, 2015.

To know more in details find the attachment file