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BEFORE THE ADJUDICATING OFFICER

SECURITIES AND EXCHANGE BOARD OF INDIA
[ADJUDICATION ORDER NO. IVD-ID5/ADPL- JRP/AO/DRK-AKS/EAD3- 584/128 -2014]
__________________________________________________
UNDER SECTION 15 I OF SECURITIES AND EXCHANGE BOARD OF INDIA
ACT, 1992 READ WITH RULE 5(1) OF SECURITIES AND EXCHANGE
BOARD OF INDIA (PROCEDURE FOR HOLDING INQUIRY AND IMPOSING
PENALTIES BY ADJUDICATING OFFICER) RULES, 1995
Against:
Shri Jagdish Ramanlal Patel
C/44, Greenwood Society
Oppo Sarvoday - 2
Sola Road, Ahmedabad- 380061
PAN No. AAWPP0600R

FACTS IN BRIEF
1. Securities and Exchange Board of India (hereinafter referred to as SEBI)
conducted an investigation into the trading in the scrip of Aarey Drugs and
Pharmaceuticals Ltd. (hereinafter referred to as ADPL) during the period
January 1, 2009 to August 31, 2009 (hereinafter referred to as Investigation
Period). The scrip is listed on BSE Ltd. (hereinafter referred to as BSE). It is
noted from the findings of the investigation report (hereinafter referred to as
IR) and the table depicted below that price as well as volume in the scrip
increased significantly during the investigation period as compared to pre
investigation period.




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Aarey Drugs and
Pharmaceuticals
Ltd.
Pre Investigation Period
(1.10.2008 31.12.2008)

Open
(1.10.2008)

44.7
High
44.7
(1.10.2008)
Low
15.15
(5.12.2008)

Close
(31.12.2008)

17.6

Average Volume

7392
Investigation Period
(1.1.2009 31.8.2009)

Open
(1.1.2009)

18.35
High
52.3
(18.8.2009)
Low
15
(22.1.2009)

Close
(31.8.2009)

45.1

Average Volume

55174

% change in Average Volume (Approx)


746%

APPOINTMENT OF ADJUDICATING OFFICER
2. I was appointed as Adjudicating Officer under Section 15 I of the Securities
and Exchange Board of India Act, 1992 (hereinafter referred to as SEBI Act),
read with Rule 3 of Securities and Exchange Board of India (Procedure for
Holding Inquiry and Imposing Penalties by Adjudicating Officer) Rules, 1995
(hereinafter referred to as Adjudication Rules) to inquire into and adjudge
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under Section 15 HA of the SEBI Act for the violation of Regulations 3 (a), (b),
(c), (d), 4 (1), 4 (2) (a), (b), (e) and (g) of SEBI (Prohibition of Fraudulent and
Unfair Trade Practices Relating to Securities Market) Regulations, 2003
(hereinafter referred to as PFUTP Regulations) alleged to have been
committed by Shri Jagdish Ramanlal Patel (hereinafter referred to as
noticee) and the same was communicated vide proceedings of the Whole
Time Member appointing Adjudicating Officer dated 12.04.2013.

SHOW CAUSE NOTICE, REPLY AND HEARING

3. A Show Cause Notice No. A&E/EAD3/DRK-AKS/20929/2013 dated
16.08.2013 (herein after referred to as SCN) was served on the noticee
requiring the noticee to show cause as to why an inquiry should not be held
against the noticee and why penalty, if any, should not be imposed on the
noticee under Section 15 HA of the SEBI Act. In the said SCN, it was alleged
that the noticee in collusion with the group had executed circular trades,
synchronised trades, reversal trades and self trades in the scrip of ADPL
which had resulted in creation of artificial volume in the said scrip leading to
false and misleading appearance of trading in the scrip. Further, this has also
artificially increased the price in the scrip and hence is fraudulent in nature.

4. Noticee vide his letter dated 10.09.2013 submitted a reply to the SCN as
follows:
Noticeeis a retail investor and has traded in other scrips also.
He is not connected with the group members except Mrs. Apexa Jagdishbahai
Patel who is his wife.

5. As requested by the noticee, noticee was granted an opportunity of hearing
vide hearing notice dated 23.09.2013 to appear on 18.10.2013 at 11:30 am at
SEBI Bhavan, Mumbai. The said hearing notice was served on the noticee and
proof of service is on record. However, the noticee failed to attend the hearing
without furnishing any reasons. Noticee was again provided an opportunity of
hearing vide hearing notice dated 05.11.2013 to appear for hearing on
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26.11.2013 at 10:30 am at SEBI Bhavan, Mumbai. Noticee vide his letter
dated 22.11.2013 authorised Ms. Rinku Valanju, Advocate (herein after
referred to as 'AR') to appear on his behalf for the scheduled hearing. The AR
vide her letter dated 22.11.2013 and noticee vide his letter dated 26.11.2013
sought 3 weeks adjournment as they needed time to prepare a detailed reply
to the SCN. Vide hearing notice dated 23.12.2013 the noticee was advised to
attend the hearing on 07.01.2014 at 12:00 noon at SEBI Bhavan, Mumbai. The
AR vide her letter dated 03.01.2014 requested to adjourn the matter as she
was pre occupied with other matters. Vide email dated 03.01.2014 noticee was
asked to attend the hearing on 10.01.2014 at 02:30 pm at SEBI Bhavan,
Mumbai. However, the said hearing was adjourned and vide hearing notice
dated 17.01.2014 noticee was granted an opportunity to appear for hearing on
04.02.2014 at 11:00 am SEBI Bhavan, Mumbai.
6. At the time of hearing the AR submitted a detailed reply dated 10.01.2014
which was taken on record and further submitted as follows:
Noticee has no connection with the Promoters / Directors of the company
and with the alleged group of entities.

Noticee has done trading only for few days during the entire investigation
period and that too in miniscule quantity which will have no effect on the
market equilibrium. Further the noticee has traded towards the fag end of
the investigation period when the prices of the scrips were already high.

The AR pointed out that total market volume in the scrips of Riba Textiles
Ltd., Supertex Industries Ltd. and Aarey Drugs and Pharmaceuticals Ltd.
is less than the Group's volume.

The reversal trades are over a period of time and that too more than 2
people are involved.

The AR had sought a number of voluminous documents at the time of hearing
for which the AR was suggested to go for inspection and obtain the relevant
documents from the operations department. The AR undertook to submit a
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brief profile of the client, a copy of his KYC and any further submissions on or
before 28.02.2014.
7. Noticee in his reply dated 10.01.2014 submitted as follows:
Noticee is an independent and distinct person and met his obligations in
terms of shares and money at all times. Noticee is not part of any group as
alleged or otherwise.

The below mentioned table shows noticee's trading in the alleged scrip in
terms of number of days during the investigation period.

Name of the Company Investigation
period (no of
days)

Group traded during
Investigation Period
(no of days)
Noticee traded
during Investigation
Period (no of days)
Aarey Drugs And
Pharmaceuticals Ltd.

161 145 11

On observing the trade data, noticee's trades are stray, random, and not
continuous on every day. If noticee is a part of the alleged group, then his
trades would have been throughout the investigation period.

Noticee submits that his purchase/ sale transactions in the scrip of ADPL
were delivery based and he has met with all his obligations qua broker in
time. His trades in the scrip have resulted into net delivery of about 32,850
shares hence his trading in the scrip could not have led to false and
misleading appearance and resulted into creation of artificial volume as
alleged.

Noticee has carried out trades at ruling market prices and hence it cannot be
said that he has contributed to alleged price rise in the scrip.

Noticee's total volume in the scrip is 0.75% of the market volume. Noticee
submits that his buy volume of 15,640 shares and sell volume of 8,950 shares
is considered synchronized/ objectionable. He is not connected with anyone
in any manner and there is no connection even established between him and
alleged group entities in the SCN. Hence it cannot be said that he has carried
out synchronized / reversal or circular trades in the scrip.

Noticee's alleged synchronized volume is only 0.27% of total market volume
which is negligible and remaining 99.73% is considered normal by SEBI.

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Noticee has not indulged in any price manipulation activity by way of trading
at LTP variation. He clarifies that his orders were keyed in within permissible
price limits and impact to the price rise of scrip was normal and not
manipulative as alleged or otherwise. His trades have not caused any
material or significant impact on price if there are few trades at above LTP
and few trades below LTP but the trades were within permissible circuit limits.

Noticee's trades were as per his strategy, position, financial capacity and
circumstances. There was no common strategy, prior meeting of minds and
none is reflected even in the SCN. His trades were in the ordinary course of
trading / investment business.

8. The AR vide her letter dated 14.03.2014 submitted a brief profile of the noticee
but failed to submit a copy of his KYC as noticee's request to his stock broker,
Arcadia Share & Stock Broker Pvt. Ltd. for a copy of his KYC was denied as
the account was old.

CONSIDERATION OF EVIDENCE AND FINDINGS
9. I have taken into consideration the facts and circumstances of the case and
the material made available on record.

10. It is observed from the IR that a group of 25 entities including the noticee were
connected to each other by common address, common introducer or
introduced by other group members, transferred shares in off market to each
other etc. The name and linkages among various entities is given below:
S.No PAN NO Name Linkages
1 ABCPP211M Shailesh
Somabhai Patel
Shailesh Patel, Nitaben Patel & Kapilaben Patel have common
address viz. A 14 Snehadri Apts, Ambawadi Shreyas Tekra,
Ahmedabad, Gujarat, 380051.

Ronak Choksi introduced Nitaben Patel and Shailesh Patel (KYC by
Guiness Sec Ltd.)

Ronak Chokasi signed as witness to Shailesh Patel & Nitaben Patel
(KYC by Networth Stock Broking Ltd.)

Shailesh Somabhai Patel and Nitaben Shaileshbhai Patel received
shares in preferential allotment in Winsome in the year 2008.

Common Introducer - The following set of entities had a common
2 AGXPP3551G Nitaben
Shaileshbhai
Patel
3 AYQPP7574A Kapilaben
Somabhai Patel
4 ADDPC2938D Ronak Ashwin
Choksi
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S.No PAN NO Name Linkages
introducer:

Shailesh Patel, Nitaben Patel, Nikhilbhai Shah and Shaishil Jhaveri by
one Premal Shah (KYC by Brics Securities Ltd.)

Kapilaben Patel and Nitaben Patel by one Samir Shah (KYC by
Comfort Securities Pvt. Ltd.)

Shailesh Patel and Shaishil Jhaveri by one Macwan Joel J (KYC by
Mangal Keshav Securities Ltd.)

Shailesh Patel and Kapilaben Patel by one Prakash Kadiya (KYC by
MTL Share and Stock Brokers Ltd.)

Nitaben Patel and Shailesh Patel by one Narayan Equity Broking and
Advisory Ser Ltd. (KYC by SMC Global Sec Ltd.)

Nitaben Patel and Shailesh Patel by one Nitin Patil (KYC by SSJ
Finance and Sec Pvt. Ltd.)

Manish Shah, Nikhilbhai Shah and Shailesh Patel by one Ashish
Dapki (KYC by Nirmal Bang Sec Ltd.)

Kumkum Stock Brokers Pvt. Ltd. and Nitaben Patel by one Ripple K
Shah (KYC by Nirmal Bang Sec Ltd.)

Nitaben Patel and Shailesh Patel by one A.R. Patel (KYC by Anand
Rathi Share & Stock Brokers Ltd.)

5 ACIPS6166P Nikhilbhai Shah Nikhilbhai Shah, Shaishil T. Jhaveri and Bela T Jhaveri are Directors
of Kumkum Stock Brokers Pvt. Ltd. (KYC by Nirmal Bang Sec Pvt.
Ltd.)

Manish Ratilal Shah & Nikhilbhai Shah have common Address - B-81,
Pariseema Complex, C.G. Road, Ellisbridge Ahmedabad.

Bela Jhaveri introduced to Nikhil Shah (KYC by SSJ Finance &
Securities Pvt. Ltd.)

Shaishil Jhaveri introduced Manish Shah and Nikhil Shah (KYC by
SPFL Sec Ltd.; Siddhi Shares Pvt. Ltd.)
6 AGQPJ8664F Shaishil T. Jhaveri
7 AABPZ2800L Bela T Jhaveri
8 AACCK6784E Kumkum Stock
Broker Pvt. Ltd.
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S.No PAN NO Name Linkages
9 AZMPS2291J Manish Ratilal
Shah

Common introducer:

Shailesh Patel, Nitaben Patel, Nikhilbhai Shah and Shaishil Jhaveri by
one Premal Shah (KYC by Brics Securities Ltd.)

Bela Jhaveri and Nikhil Shah by one Hardik Shah (KYC by Religare
Securities Ltd)

Shailesh Patel and Shaishil Jhaveri by one Macwan Joel J (KYC by
Mangal Keshav Securities Ltd.)

Manish Shah, Nikhilbhai Shah and Shailesh Patel by one Ashish
Dapki (KYC by Nirmal Bang Sec Ltd.)

Kumkum Stock Brokers Pvt. Ltd. and Nitaben Patel by one Ripple K
Shah (KYC by Nirmal Bang Sec Ltd.)

10 AKQP8635P Daxaben
Vasantkumar
Shah
Nita B Bhavsar, Jipal Shah, Dhavalkumar Soni , C Shah Champaklal
and Shailesh Somabhai Patel, have common contact number i.e.
9825011486 and email ID (KYCs by Emkay Share and Stock Brokers
Ltd.)

Dhavalkumar Hastimal Soni & Hastimal Gulabchand Soni have
common address viz. Mota Nagar Wada, At Kapadwanj, Nadiad,
Gujarat 387620.

Jipal Shah introduced Kapilaben Patel and Nita Bhavsar (KYC by
Arcadia Share & Stock Brokers Ltd.)

Daxaben Shah introduced Apexa Patel (KYC by Arcadia Share &
Stock Brokers Pvt. Ltd.)

Common Introducer:
Daxaben Shah, Jipal Shah and Nita Bhavsar by one Pranav Vora
(KYC by ANS Pvt. Ltd.)
11 ANNPB8668D Nita B Bhavsar
12 BMWPS2515R Jipal Pineshkumar
Shah
13 AURPS9165R Dhavalkumar
Hastimal Soni
14 AGMPS1204L Hastimal
Gulabchand Soni
15 AURPS4385B C Shah
Champaklal
16 AFXPP3167P Apexa
Jagdishbhai Patel
Apexa Jagdishbhai Patel & Jagdish Ramanlal Patel have common
address viz. C/44, Greenwood Society, Opp:Sarvoday-2, Sola Road,
Ahmedabad, 380061.

Daxaben Shah introduced Apexa Patel (KYC by Arcadia Share &
Stock Brokers Pvt. Ltd.)

Jagdishbhai Patel introduced Sonal Kiritbhai Patel (KYC by Arcadia
Share & Stock Brokers Pvt. Ltd.)

17 AAWPP0600R Jagdish
Ramanlal Patel
18 AOEPP2753D Sonal Kiritbhai
Patel
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S.No PAN NO Name Linkages
Common Introducer:
Apexa Patel and Jagdish Patel by one Tejas Shah (KYC by SSJ
Finance and Securities Pvt. Ltd.)


19 AAACC2255N Chase Marketing
Pvt. Ltd

The email id is given as supertex@vsnl.com. Further, it received
shares in preferential allotment from Supertex Industries Ltd. It
transferred 350,000 shares of Supertex to Manish Ratilal Shah and
500,000 shares of Supertex to Nikhil V Shah in off market.

20 AAAPA7605D Amrita Agrawala She received shares in preferential allotment from Supertex Industries
Ltd. She transferred 300,000 shares of Supertex to Kapilaben
Somabhai Patel in off market.
As stated in her reply dated 15.1.2013, she had transaction with
Kapilaben Somabhai Patel. It was a friendly loan.
21 AFYPM7292R Danish Merchant He received shares in preferential allotment from Supertex Industries
Ltd. He transferred 150,000 shares of Supertex to Kapilaben
Somabhai Patel in off market.

Letters dated 14.1.2013 from Amrit L Gandhi and Danish Merchant
requesting for one month time are identical letters and signed by
common person, indicates connection between the two entities
22 ADPPB9428F Jagdish Bhagat
He received shares in preferential allotment from Supertex Industries
Ltd. Further, he received 10,000 shares of Supertex from Kumkum
Stock Broker Pvt. Ltd in off market.
23 AAUPV2876R Jigish Vasa He transferred 55,000 shares of Supertex to Bela Tushar Zaveri in off
market. Further, he received 30,000 shares of Supertex and 59,200
shares of Winsome from Shaishil Jhaveri in off market.
24 AADCP2649G Parameshwar
Exports Pvt Ltd
It received shares in preferential allotment from Supertex Industries
Ltd. It transferred 300,000 shares to Manish Ratilal Shah in off market.

25 AACPG5265H Amrit L Gandhi He received shares in preferential allotment from Supertex Industries
Ltd.
Letters dated 14.1.2013 from Amrit L Gandhi and Danish Merchant
requesting for one month time are identical letters and signed by
common person, indicates connection between the two entities

11. Out of the above entities, several entities also entered into off market
transactions with each other that indicates their connection. The off market
transactions in the scrip of RTL was for 1,094,439 shares, in SIL for 2,646,181
shares, in ADPL for 79,224 shares and in WTIL for 178,196 shares.

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12. The trading activity of the group clients in the scrip of ADPL during the
investigation period is as follows:
A
Traded
Quantity
(Market)
B
Total Buy
of Group
C
% of
total
buy
of
Grou
p to
total
trade
d
quan
tity
(Mar
ket)
D
Total Sale
of Group
E
% of
total
sale
of
grou
p to
total
trade
d
quan
tity
(Mar
ket)
F
Trade
Amongst
Group*
G
% of
trade
amo
ngst
Grou
p to
total
trade
d
quan
tity
(Mar
ket)

H
Synchro
nised
Trades
among
Group**
I
% of
sync
hroni
sed
trade
s to
trade
amo
ng
Grou
p
J
% of
synchron
ised
trades
among
Group to
total
traded
quantity
(Market)


8883052

4589697 51.67 4439211 49.97 2486523 27.99 846184 34.03 9.53

Aarey Drugs and Pharmaceuticals Ltd.
13. It is observed from the IR that the noticee along with the group had executed
synchronised trades, reversal trades and circular trades in the scrip of ADPL. It
is noted that out of 161 days during which the scrip was traded during period
of investigation, the trades amongst group were executed on 145 days. The
individual contribution of the noticee in such trades is as mentioned below:
Client Name
Total
Buy
(Market)
Buy
amongst
Group
Total
Sell
(Market)
Sell
amongst
Group
Synchronised
Trades
amongst
Group (Buy)
Synchronised
Trades
amongst
Group (Sell)
Jagdish Ramanlal Patel 69,550 44,495 36,700 22,000 15,640 8,950

14. A few instances of synchronised trades of the noticee in the scrip of ADPL
within the group are as follows:
Trade
Date
Trade
Time
Buy Client
Name
Buy
Order
Time
Buy
Order
Qty
Buy
Order
Price
Sell Client
Name
Sell
Order
Time
Sell
Order
Qty
Sell
Order
Price
11/06/09 14:52:25 Jagdish
Patel
14:52:24 10,000 37.75 Jipal Shah 14:52:20 10,000 37.75
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14/07/09 13:37:50

Daxaben
Shah
13:37:36

5,000 41.75 Jagdish
Patel
13:37:50

10,000 41.75
05/08/09 15:00:34

Jagdish
Patel
15:00:33

3,000 48.8 Daxaben
Shah
15:00:29

2,990 48.8
25/08/09 09:58:50

Jagdish
Patel
09:58:50

3,000 48.05

Nita
Bhavsar
09:58:09

3,000 51


15. It is observed from the IR that noticee's 35.15% of buy amongst the group is
synschronised while his 40.68% of sell amongst the group is synchronised.
Further as seen from the order log trade log noticee's synchronised trades
were frequent in nature with the group members during the period June-
August 2009.

16. The instance of reversal trade provided in the IR does not conclusively
establish reversal trading of the noticee in the scrip of ADPL while the instance
of circular trading made available on record also does not establish circular
trading by the noticee as there is substantial gap between the trades (thus
there was transfer of beneficial ownership).

17. Thus, from the above it can be concluded that noticee had executed
synchronised trades in the scrip of ADPL.

18. Further analysis of the aforesaid trades amongst Group is as follows:
Client Name No. of
Days
traded
amongst
group
No. of
Trades
amongst
group
LTP
Difference (%)

Jagdish Ramanlal Patel

13 33 -1.36 to 1.5

19. The price impact of trades of the Group is as follows :
Scrip No. of
trades
with +
LTP
% of
trades
with +
LTP
Impact
of
trades
with +
LTP (`)
No. of
trades
with -
LTP
% of
trades
with -
LTP
Impact
of
trades
with
LTP (`)
Net
LTP
impact
(`)
Sum of
NHP
Diff
(Market)
(`)
Sum of
NHP
Diff
(Group)
(`)
Aarey Drugs
and
Pharmaceuticals
1870 46.18% 780.9 1557 37.02% -360.35 420.55 33.95 20.6
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Scrip No. of
trades
with +
LTP
% of
trades
with +
LTP
Impact
of
trades
with +
LTP (`)
No. of
trades
with -
LTP
% of
trades
with -
LTP
Impact
of
trades
with
LTP (`)
Net
LTP
impact
(`)
Sum of
NHP
Diff
(Market)
(`)
Sum of
NHP
Diff
(Group)
(`)
Ltd.

It is noted from the above that the trades of the Group resulted in increase in
price of the scrip.
20. At this juncture, I would like to quote the order of the Honble Securities
Appellate Tribunal (herein after referred to as 'SAT') in Sparkline Mercantile
Co. Pvt. Ltd. Vs SEBI dated 16.01.2012 wherein it was held as follows:
..It is an admitted position that it is difficult to get direct evidence with
regard to synchronization of trades for the purpose of upsetting the market
equilibrium or to manipulate the market. It is only on the basis of
circumstantial evidence that such a connection can be proved

..A large number of trades were executed among the group entities within
a minute of placing the order. This cannot happen without prior meeting of
minds among the connected entities. From the details of the trades
executed and having regard to the trading system, we do not think that
such large number of trades could match between the same parties
unless the trading system was being abused..

21. As observed in pre paras that trades executed by the noticee was not of one
instance but aforesaid transactions were repeatedly carried out over a period
of time within the group. It is pertinent to note that such trading patterns lead to
price fluctuation and creates false appearance of trading in securities market
and thereby tending to mislead the gullible investors.

22. It can be concluded from the above that the noticee had executed
synchronised trades in the scrip of ADPL which had resulted in creation of
artificial volume in the said scrip leading to false and misleading appearance
of trading in the scrips. Further, this has also artificially increased the price in
the scrip and hence is fraudulent in nature.

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23. In view of the above facts and circumstances it can be concluded that the
noticee had violated Regulations 3 (a), (b), (c), (d), 4 (1), (2), (a) and (e) of
PFUTP Regulations in the aforementioned 4 scrips as discussed above. The
text of the said provisions are as follows:
SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities
Market) Regulations, 2003
3. Prohibition of certain dealings in securities
No person shall directly or indirectly
(a) buy, sell or otherwise deal in securities in a fraudulent manner;

(b) use or employ, in connection with issue, purchase or sale of any security
listed or proposed to be listed in a recognized stock exchange, any manipulative
or deceptive device or contrivance in contravention of the provisions of the Act or
the rules or the regulations made there under;

(c) employ any device, scheme or artifice to defraud in connection with dealing in
or issue of securities which are listed or proposed to be listed on a recognized
stock exchange;

(d) engage in any act, practice, course of business which operates or would
operate as fraud or deceit upon any person in connection with any dealing in or
issue of securities which are listed or proposed to be listed on a recognized stock
exchange in contravention of the provisions of the Act or the rules and the
regulations made there under.

4. Prohibition of manipulative, fraudulent and unfair trade practices
(1) Without prejudice to the provisions of regulation 3, no person shall indulge in
a fraudulent or an unfair trade practice in securities.

(2) Dealing in securities shall be deemed to be a fraudulent or an unfair trade
practice if it involves fraud and may include all or any of the following, namely:

(a) indulging in an act which creates false or misleading appearance of trading in
the securities market;

(e) any act or omission amounting to manipulation of the price of a security;

24. The said violations attract penalty under Section 15HA of the SEBI Act which
provides that:
15HA. Penalty for fraudulent and unfair trade practices- If any person indulges in
fraudulent and unfair trade practices relating to securities, he shall be
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Page 14 of 15

liable to a penalty of twenty-five crore rupees or three times the amount of
profits made out of such practices, whichever is higher.

25. In this regard, the provisions of Section 15J of the SEBI Act and Rule 5 of the
Rules require that while adjudging the quantum of penalty, the adjudicating
officer shall have due regard to the following factors namely;
a. the amount of disproportionate gain or unfair advantage wherever
quantifiable, made as a result of the default
b. the amount of loss caused to an investor or group of investors as a
result of the default
c. the repetitive nature of the default

26. The IR has not quantified any gain or unfair advantage accrued to the noticee
as a result of noticee's trading in the scrip of ADPL. Further, there is no
material made available on record to assess the disproportionate gain or
unfair advantage and amount of loss caused to an investor or group of
investors as a result of noticee's violation.

27. In view of the abovementioned conclusion and after considering the factors
under Section 15J of the SEBI Act, I hereby impose a penalty of
` 3,00,000/- (Rupees Three Lakh only) on Shri Jagdish Ramanlal Patel under
Section 15HA of the Securities and Exchange Board of India Act, 1992 which
is appropriate in the facts and circumstances of the case.

ORDER
28. In exercise of the powers conferred under Section 15 I of the Securities and
Exchange Board of India Act, 1992, and Rule 5 of Securities and Exchange
Board of India (Procedure for Holding Inquiry and Imposing Penalties by
Adjudicating Officer) Rules, 1995, I hereby impose a penalty of ` 3,00,000/-
(Rupees Three Lakh only) on Shri Jagdish Ramanlal Patel (PAN No.
AAWPP0600R) in terms of the provisions of Section 15HA of the Securities
and Exchange Board of India Act 1992 for the violation of Regulations 3 (a),
(b), (c), (d), 4 (1), 4 (2) (a) and (e) of SEBI (Prohibition of Fraudulent and
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Page 15 of 15

Unfair Trade Practices Relating to Securities Market) Regulations, 2003. In
the facts and circumstances of the case, I am of the view that the said penalty
is commensurate with the violations committed by the noticee.

29. The penalty shall be paid by way of Demand Draft drawn in favour of SEBI
Penalties Remittable to Government of India payable at Mumbai within 45
days of receipt of this order. The said demand draft shall be forwarded to
Chief General Manager- IVD, Securities and Exchange Board of India, Plot
No. C4-A, G Block, Bandra Kurla Complex, Bandra (E), Mumbai 400 051.

30. In terms of the provisions of Rule 6 of the Securities and Exchange Board of
India (Procedure for Holding Inquiry and Imposing Penalties by Adjudicating
Officer) Rules 1995, copies of this order are being sent to Shri Jagdish
Ramanlal Patel residing at C/44, Greenwood Society, Oppo Sarvoday - 2,
Sola Road, Ahmedabad- 380061 and also to the Securities and Exchange
Board of India, Mumbai.




Place: Mumbai D. RAVI KUMAR
CHIEF GENERAL MANAGER &
Date: 09.09.2014 ADJUDICATING OFFICER
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