TaxTMI 
TaxTMI 
2025 (11) TMI 963
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....e i/b. Mansukhlal Hiralal & Co. ORDER Per: Justice P.S. Dinesh Kumar, Presiding Officer These two appeals are directed against order dated November 22, 2024 passed by the CGM Chief General Manager, SEBI Securities and Exchange Board of India, restraining the appellants from accessing the securities market for a period of one year, to disgorge a sum of Rs. 31.39 Lakhs and to pay the penalty mentioned therein. 2. We have heard Mr. Kunal Katariya, learned Advocate for the appellant and Mr. Suraj Chaudhary, learned Advocate for the respondent. 3. Brief facts of the case are, NSE National Stock Exchange of India Ltd conducted an analysis to identify the trading pattern in the scrip of Jagsonpal Pharmaceuticals Ltd. ('JPL' for shor....
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.... basis of his own research and technical analysis of various companies. He had adopted a sector agnostic approach for trading and the average shares sold by him during F.Y.2019-20 and F.Y.2023-24 were about Rs. 123 Crores. His trading in JPL scrip formed only 2% of the total shares sold by him. Mr. Rao had retired as the CFO of JPL after completion of an unblemished career of 31 years with no disciplinary actions or any regulatory proceedings against him. The appellants got to know about each other in and around December, 2021 and they met in January, 2022 to discuss the marriage proposal of their children. 5. With regard to the scrip of JPL, Mr. Jain replied stating that on February 18, 2022 there was an increase of 544% in the number o....
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....he appeal, Shri Choudhary for the SEBI submitted that Mr. Rao became the CFO of JPL in February, 2022. It is an admitted fact that appellants had exchanged a call for 530 seconds on February 20, 2022. On the very next date, namely, February 21, 2022, Mr. Jain has purchased 92,000 shares. Mr. Jain did not normally deal in the pharmaceuticals sector. But he has purchased large quantity of shares of JPL of which Mr. Rao was the CFO which strongly probabalises that Mr. Jain had purchased the shares based on the UPSI received from Mr. Rao. Adverting to paragraph Nos. 10 and 15 in V.K. Kaul vs. AO, SEBI Appeal No. 55 of 2012 decided on 8.10.2012, he submitted that in a similar circumstances, this Tribunal has held that the trading was based on th....
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....022. The next conversation is only on February 6, 2022 and thereafter the message in question was sent on February 20, 2022. It was submitted by Mr. Katariya that Mr. Jain's daughter got married to Mr. Rao's son. Therefore, it is not probable that the UPSI may have been passed on to enable Mr. Jain to earn profit as a part of dowry. 13. We are of the view that the entire WhatsApp messages are nothing more than formal exchange of messages between the parents of a bride and a groom. 14. With regard to purchase of 92,000 shares of JPL by Mr. Jain, the argument advanced by Shri Katariya is that Mr. Jain was sector agnostic and all that mattered to him was a profit in any scrip. Adverting to paragraph No. 38 of the impugned order he submit....
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....3,68,392.00 23,00,96,958.80 15. We have perused the above table. Shri Katariya is right in contending that Mr. Jain has traded in various sectors. Canfin Home, Can Bank, Union Bank are the banking sectors. Coal India, Hind Copper are mining sectors. SCI is shipping sector. ITC is hotel sector. ZEEL is entertainment sector. The buy value of Canfin Home is Rs. 4 .23 Crores, the buy value of Coal India is Rs. 3.73 Crores, the buy value of SCI shares is Rs. 2.47 Crores and the buy value of the scrip in question i.e. Jagsonpal Pharmaceuticals is Rs. 2.14 Crores. It is noted in para No. 38 of the impugned order that all trades in table 8 extracted above are in the UPSI period i.e. December 20, 2021 and February 21, 2022. But, the above tabl....