Sebi bars Kotecha for 14 years from markets

Sebi on Thursday imposed a 14-year ban from the securities market on Nirmal Kotecha as well as penalty worth over Rs 32 lakh with respect to fraudulent trades in Pyramid Saimira Theatre shares that happened nearly ten years ago.

Kotecha will have to serve only little over 5 years of ban since he has been barred from the securities market since April 23, 2009. In a 73page order, the regulator said Kotecha had violated various norms, including prohibition of fraudulent and unfair trade practices.

He has been restrained from "accessing the securities market and further prohibit him from buying, selling or otherwise dealing in securities, directly or indirectly, or being associated with the securities market in any manner, whatsoever, for a period of 14 years," the order said. The 14-year debarment will stand reduced by the period already undergone since April 23, 2009, it added. Further, he has been asked to pay an amount of Rs 32,50,882, along with interest at the rate of 12 per cent per annum from December 22, 2008 onwards. The amount has to be paid within 45 days. According to the regulator, Kotecha had made a "unlawful gain of Rs 38,74,981".

In a separate order pertaining to the same case, Sebi directed nine individuals to pay “jointly and severally" an amount of Rs 22,69,461, along with an annual interest at the rate of 12 per cent from December 22, 2008. The individuals are Rajesh Jayantilal Shah, Nirmal Rohitbhai Shah, Devang R Shah, Ritaben Rohitkumar Shah, Binaben Shaileshkumar Shah, Namitaben Sachinkumar Shah, Sachin Jayantilal Shah, Manishaben Rajeshkumar Shah and Jinny Nirmal Shah.