It was found by the SEBI that respondent in Appeal No.20 of 2009 before the SAT had received 12,053 shares out of which 3272 shares were transferred before the day of listing of shares of the companypany with the stock exchange, 3598 shares on the day of listing and 5183 shares after the day of listing.
From all the transactions, which are in the nature of a scam, it is clear that the demat account holders were number genuine and either they were benami or fictitious and the shares were purchased on behalf of someone, who had financed these demat account holders and a show was made as if the shares were finally sold to the companycerned respondents.
The said 553 demat account holders sold the shares to the said respondent at the rate of Rs.1170/ per share, though the market value of the said shares was much more than Rs.1170/ per share.
The said shares were purchased through off market transactions from 553 demat account holders, who had been allotted shares of the said companypany.
The shares of the companypany were listed on 14th March, 2005.
The entire chain of the transactions of shares and doubtful nature of the demat holders, establishes the fact that all these transactions were numberhing but a scam.
Number of demat account were having same address and that too, care of someone else and this makes genuineness of the account holders and the transactions doubtful.
By having the aforestated device, the respondents had done something which was against the interest of small investors because from their quota the shares were allotted to the demat account holders who were number genuine.
As modus operandi was quite similar in applications for shares made in respect of both the companypanies and parties companycerned are companymon, we have referred to the issue of Jet Airways India Limited.
If the respondents had acted as brokers, they ought to have been registered brokers, but they were number.
