SAT upholds Sebi's order against Baheti, HUF in ASL case

The Securities Appellate Tribunal (SAT) today upheld Sebi 's order against Kamlesh Baheti, HUF, wherein the entity was barred from the capital market for fraudulent trading activities in shares of Alka Securities.In May 2012, Securities and Exchange Board of India (Sebi) had restrained Kamlesh Baheti, Hindu Undivided Family (HUF) from accessing the securities market, for a period of 2 years.The regulator had found that Baheti had indulged in certain trading activity along with Alka Securities promoters and other entities with the intention of creating artificial volumes so as to give the market players a false impression regarding liquidity in the shares of the company."In the case in hand the appellant (Kamlesh Baheti, HUF) has admittedly received 20,000 shares in his demat account on January 19, 2009 from the account of Dimple M Kothari (a promoter of Alka Securities), which is a matter of record and not disputed by the appellant, without any consideration," SAT said in its order."This fact clearly proves a nexus between the appellant and the promoter group. Thus, the impugned order is factually correct and legally valid," it added.Sebi had found that Baheti received 20,000 shares of Alka Securities from the company's promoter Dimple Kothari in January 2009.Baheti was alleged to have received shares from the promoters without consideration, and further transferred the same to entities which were identified as persons who had manipulated the price and volume of shares of Alka Securities.Sebi had thereby submitted to SAT that the charge against Baheti "being a conduit for transfer of shares from the promoters to the persons held to be manipulating the price of the shares of Alka Securities Limited stands proved".