9911796707
TMI Blog2012 (1) TMI 333X X X X Extracts X X X X X X X X Extracts X X X X ..... rities Market) Regulations, 2003 (for short the Regulations). He has found that the appellant, in collusion with certain brokers and clients, had executed synchronized trades on the Bombay Stock Exchange in the scrip of Jindal Drilling Industries Ltd. (for short the company) and indulged in non-genuine/fraudulent transactions in violation of the Regulations which resulted in creation of artificial volume, manipulation of the price of the scrip and distorting the market equilibrium. The appellant was served with a show cause notice dated July 25, 2008 requiring it to show cause as to why an enquiry should not be held against it and penalty imposed for the said violations. Admittedly, the appellant did not avail of this opportunity and the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Hem Kanak Mercantile UTI Securities Ltd. 293474 243474 536948 4.68 Chirag Tanna M R Share Broker Ltd. 526756 447311 974067 8.49 Total 1806594 1822421 3629015 31.63 The details of their trading amongst themselves are also provided in the form of a table as under: Buy/Sell Samradha Finstock Emerging Capital Sparkline Mercantile V U Caplease H ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... clear connection with the group entities and the appellant. The only connection that has been brought out by the adjudicating officer is that Emerging Capital Advisors Limited, one of the group entities, and the appellant are located at the same address and also have same phone number. There has been no transaction between Emerging Capital Advisors Ltd. and the appellant. It was further submitted by the learned counsel for the appellant that the synchronized trades per se are not illegal. It is only when synchronization of trades is done with a view to manipulate the market that such trades can be questioned. The evidence brought on record is not enough to bring home the charge against the appellant and punishing him for violating regulati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... noticee and Mayrose Captin Pvt. Ltd. One of the directors of Hem Kanak Mercantile Pvt. Ltd., Mrs. Sadhana Nabera is the wife of Shri Dilip Nabera. The BSE Investigation Report had also mentioned that Adhunik Finance Pvt. Ltd. and Samradha Finstock Pvt. Ltd. have a common phone number. It was observed from the Form No.3CD Statement of particulars required to be furnished under section 44AB of the Income Tax Act, 1961 in the Assessment year 2004- 05 that V U Caplease Pvt. Ltd. had received ₹ 50 lacs from Adhunik Finance Private Ltd. Adhunik Finance in its reply dated March 10, 2008 admitted that it had given ₹ 50 lacs to V U Caplease Pvt. Ltd. as loan against shares to be purchased in due course in the financial year 2003-04. H ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o other group entities namely, Hem Kanak Mercantile Private Limited (Appeal no. 171 of 2009 decided on 11.3.2010) and Samradha Finstock Pvt. Ltd. (Appeal no. 204 of 2010 decided on 28.2.2011) this Tribunal had reduced the penalty to ₹ 7 lacs. We have seen the earlier orders. The transactions are the same and the entities involved are also group entities. The case of the appellant is identical to the two cases referred to above. The appellant, therefore, cannot be given a different treatment. We, therefore, reduce the penalty to ₹ 7 lacs in this case. In the result, while upholding the findings of the adjudicating officer, we reduce the penalty to ₹ 7 lacs. The impugned order stands modified accordingly. There will be no ..... X X X X Extracts X X X X X X X X Extracts X X X X
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