Vipul Mohan Joshi vs Securities and Exchange Board of India on 30 December 2019

1. The present appeal has been filed against the order dated 30th August, 2019 passed by the Adjudicating Officer imposing a penalty of Rs.5 lakhs for violation of Regulations 3(a), (b), (c), (d) and 4(2)(d) and (e) of the Securities and Exchange Board of India (Prohibition of Fraudulent and

Unfair Trade Practices relating to Securities Market) Regulations, 2003.

2. From a perusal of para 15 of the impugned order we find that proceedings were initiated against the appellant for the alleged fraudulent dealings in the shares of Shreekrishna Biotech Limited. For the said fraudulent dealing proceedings under Section 11B was initiated by the Whole Time Member (WTM) who passed an order dated 31st January, 2019 restraining the appellant from accessing the securities market for a period of three years. For the same fraudulent dealings and for the same investigation period the Adjudication proceedings were also initiated under Section 15I and on the same charges the impugned order was passed.

3. The appellant had earlier filed an Appeal no.105 of 2019 against the order of the WTM dated 31st January, 2019 which order was set aside and the appeal of the appellant was allowed by our judgement dated 7th November, 2019. No further appeal has been filed by the respondent before the superior forum till date.

4. The learned counsel for the respondent further admits that the issue is the same which was dealt by the WTM. Since we have allowed the appeal of the appellant against the

order of the WTM and the issue involved is the same we do not see any reason for continuation of the impugned order and consequently with the consent of the parties the appeal is being decided at the admission stage itself without calling for any affidavit as no factual controversy is involved.

5. In the light of the aforesaid, the impugned order dated 30th August, 2019 passed by the Adjudicating Officer in so far as it relates to the appellant is concerned is quashed. The appeal is allowed.

Sd/- Justice Tarun Agarwala Presiding Officer

Sd/- Justice M.T. Joshi Judicial Member

30.12.2019 Prepared and compared by RHN