Mahaveer Yeshwanti Bai vs Sebi
- CitationAppeal No.440 of 2023
Ratio decidendi
The rule this decision rests on
Prima facie, a penalty imposed on a market participant solely on the basis of its trading pattern, where that pattern is said to create a misleading appearance of trading and artificial volume, is not sustainable in the absence of any connection between that participant and the other noticees; such a trading pattern cannot by itself be the sole ground for holding the participant guilty. Pending final determination, execution of the penalty may be stayed.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
Date: 11.5.2023
Appeal No.440 of 2023
Mahaveer Yeshwanti Bai ...Appellant
Versus
Securities and Exchange Board of India ...Respondent Mr. Prakash Shah, Advocate with Mr. CA Kushal Shah i/b Prakash Shah and Associates for the Appellant. Mr. Vyom Shah, Advocate with Mr. Ravishekhar Pandey, Ms. Shefali Shankar and Ms. Rasika Ghate, Advocates i/b. MDP & Partners for the Respondents.
Order: 1.
We have heard the learned counsel for the parties.
Prima facie we find that the appellant has been
penalized only on the basis of its trading pattern which
has created misleading appearance of trading and has
generated artificial volume in the scrip.
2. Prima facie in the absence of any connection with
the other noticees the trading pattern cannot be a sole
ground to hold the appellant guilty.
3. Let a reply be filed by the respondent within three
weeks. Rejoinder may be filed three weeks thereafter.
The matter would be listed to admission and for final
disposal on 13th July, 2023.
4. Considering the aforesaid, we stay the penalty
imposed upon the appellant till further orders.
5. This order will be digitally signed by the Private
Secretary on behalf of the bench and all concerned
parties are directed to act on the digitally signed copy
of this order. Certified copy of this order is also
available from the Registry on payment of usual
charges.
Justice Tarun Agarwala Presiding Officer
Ms. Meera Swarup Technical Member RAJALA Digitally by signed
KSHMI RAJALAKSHMI HARISH NAIR HARISH Date:
11.5.2023 NAIR 2023.05.17 12:01:58 +05'30' RHN
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