July 24, 2014
PR No. 075/2014
Order in the matter of KLG Capital Services Limited
Shri Prashant Saran, Whole Time Member, SEBI has passed an order dated July 24, 2014 in the matter of KLG
Capital Services Limited against Mr. Hemant R. Patel, Hemant Patel(HUF), Mr. Praveen Mohnot, Ms. Priyanka
Singhvi, Mr. N. Ravichandran and Ms. Anita Ravichandran for violations under SEBI (Prohibition of Insider Trading)
Regulations, 1992.
Awaita Properties Pvt. Ltd. (APPL) acquired 17,11,287 equity shares of KLG Capital Services Limited (KLG) through
market transactions during February 22-27, 2008. This acquisition increased its shareholding in KLG to 60.46%.
It was observed that the above entities had access to the unpublished price sensitive information (UPSI) relating to
the impending acquisition of equity shares of KLG by APPL. They communicated the UPSI to their relatives and
while in possession of the UPSI, they undertook the transactions in the shares of KLG.
The order has passed the following directions with immediate effect:
| i) |
Mr. Hemant R. Patel, Hemant Patel (HUF), Mr. Praveen Mohnot and Mr. N. Ravichandran shall not: |
|
a) |
buy, sell or deal in the securities market in any manner whatsoever, or access the securities market, directly or
indirectly for a period of ten (10) years from the date of this order. |
|
b) |
hold position of Director in the Board of Directors of any listed company for a period of ten (10) years from the
date of this order. |
| ii) |
Ms. Priyanka Singhvi and Ms. Anita Ravichandran shall not buy, sell or deal in the securities market in any
manner whatsoever, or access the securities market, directly or indirectly for a period of ten (10) years from the date
of this order. |
| iii) |
Mr. Hemant R. Patel and Hemant Patel (HUF) shall disgorge the unlawful gain of Rs. 42,58,183. He shall also
pay Rs. 31,29,816, being the simple interest at the rate of 12% per annum for 6 years (2008-14) on the unlawful
gain of Rs.73,87,999. Thus, he shall pay a total amount of Rs. 73,87,999 (Rupees Seventy Three Lakh Eighty
Seven Thousand Nine Hundred Ninety Nine only); |
| iv) |
Ms. Priyanka Singhvi shall disgorge the unlawful gain of Rs.73,84,117 (the amount excludes the unrealised
profits). She shall also pay Rs. 47,86,615, being the simple interest at the rate of 12% per annum for 6 years (2008-14) on the unlawful gain of Rs.73,84,117. Thus, she shall pay a total amount of Rs. 1,21,70,732 (Rupees One Crore
Twenty One Lakh Seventy Thousand Seven Hundred Thirty Two only); |
| v) |
Ms. Anita Ravichandran shall disgorge the unlawful gain of Rs. 54,61,127. She shall also pay Rs. 40,22,855
being the simple interest at the rate of 12% per annum for 6 years (2008-14) on the unlawful gain of
Rs.54,61,127. Thus, she shall pay a total amount of Rs. 94,83,982 (Rupees Ninety Four Lakh Eighty Three Thousand Nine
Hundred Eighty Two only); |
Mumbai
July 24, 2014
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