Mr. Ashlesh Shah vs Sebi

Date of Decision: 08.12.2016

Appeal No. 430 of 2015

Mr. Ashlesh Shah 16, Vasupujyakrupa Society, Ambawadi, Ahmedabad-380 015 ...Appellant

Versus

Securities and Exchange Board of India, SEBI Bhavan, Plot No. C-4A, G-Block, Bandra-Kurla Complex, Bandra (East), Mumbai-400 051 ...Respondent

Mr. J. J. Bhatt, Advocate i/b Ms. Rinku Valanju, Advocate for the Appellant.

Mr. Aditya Chitale, Advocate with Mr. Tomu Francis, Advocate for the Respondent.

CORAM: Justice J.P. Devadhar, Presiding Officer Jog Singh, Member

Per: Justice J.P. Devadhar (Oral)

1.

This appeal is filed to challenge the order passed by the Whole

Time Member ("WTM" for short) of Securities and Exchange Board of

India ("SEBI" for short) on June 11, 2015. By the said order the

appellant is prohibited from buying, selling or dealing in the securities

market, in any manner whatsoever for a period of five years.

2. In the impugned order it is held that the appellant belongs to a

group consisting of Krupa Soni, Sanjay Soni, J.M Soni Consultancy, 2

Krunal Gopaldas Rana, Dhirenkumar Dharamdas Agarwal and that group

had violated Securities and Exchange Board of India (Prohibition of

Fraudulent and Unfair Trade Practices relating to Securities Market)

Regulations, 2003 ("PFUTP Regulations" for short). Accordingly,

proceedings have been initiated and by order dated October 01, 2014 the

group entities were prohibited from entering the securities market.

3. It is not in dispute that in Appeal No. 312 of 2014, the decision of

the WTM dated October 01, 2014 was quashed qua the appellant herein.

Similarly, in Appeal No. 390 of 2014 and Appeal No. 178 of 2014, the

order of WTM passed against Krupa Soni and Krunal Gopaldas Rana on

October 01. 2014 was set aside by this Tribunal on August 22, 2016.

4. Although the impugned order dated June 11, 2015 is passed

against the appellant on remand, since order against other group entities

is yet to be passed on remand, it would be just and proper to set aside the

impugned order and direct the WTM of SEBI to pass a composite order

against all the group entities.

5. Accordingly, impugned order dated June 11, 2015 is quashed and

set aside with a direction to the WTM of SEBI to pass a composite order

against all the group entities especially, because, it is the case of SEBI

that the impugned transactions were carried out by the appellant and

others as a group.

6. All contentions of both sides are kept open. 3

7. Appeal is disposed of in the above terms with no order as to costs.

Sd/-

Justice J.P. Devadhar Presiding Officer

Sd/-

Jog Singh Member

08.12.2016 Prepared & Compared By: PK