Sebi rejects 15 consent pleas; 4 related to Pyramid Saimira

Sebi has turned down 15 consent pleas, including that of certain entities accused in the Pyramid Saimira Theatre case, to settle proceedings related to alleged violations of securities market norms.
In its latest update, for the period June 13-August 5, 2014, Securities and Exchange Board of India (Sebi) has also rejected settlement applications of Keynote Corporate Services, Keynote Capitals, Brooks Laboratories, Onelife Capital Advisors and Dani Finlease.
With this, the total number of rejected applications for settlement by Sebi has touched 262, ever since the revised rules for consent framework came into effect on May 25, 2012.
The 15 consent applications include four pleas involving 9 individuals who have been charged of market manipulation activities related to shares of Pyramid Saimira.

These individuals are -- Raju G Shah, Rajesh Jayantilal, Shah, Nirmal Rohitbai Shah, Shailesh Jayantilal Shah, Binaben Shaileshkumar Shah, Ritaben Rohitkumar Shah, Manishaben Rajeshkumar Shah, Sachin Jayantilal Shah and Devang R Shah.
Besides, the market regulator has rejected to settle cases against Atul Ranchal, Rajesh Mahajan, Ketan Shah who are alleged of violating 'Prohibition of Fraudulent and Unfair Trade Practices' norms in the matter of Brooks Laboratories.

Sebi has also rejected the plea of Brooks Laboratories charged of fraudulent trading and disclosure rules violations.
The other applications rejected are of Keynote Corporate Services which is facing proceedings for fraudulent trading practices and violations of merchant banking norms.

According to Sebi, the 15 applications have been rejected "as they are not found to be in consonance" with its norms on consent mechanism which were issued in May, 2012.
"The pending proceedings in these cases will continue in accordance with law," it added.
In May last year, Sebi had tightened its regulations for settlement through consent framework, while the regulator has been making public the names of the rejected applications since January this year.
Under Sebi's consent mechanism, firms and individuals can seek to settle the cases with the regulator after the payment of certain charges, without admission or denial of any guilt.

Earlier this year, Sebi had brought in stricter consent norms wherein entities charged with serious offences like illegal money pooling, insider trading and fraudulent trades can't avail the settlement mechanism.
These regulations were notified with retrospective effect from April 20, 2007 -- the day when Sebi's existing consent settlement system was introduced.