sebi:AIL/AO/SKS/SG/DCR/01/2012
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Facts / Headnote
Penalty imposed on the noticee for violation of PFUTP Regulations
Provisions invoked
- s. 15
- s. 15H
- s. 15J
Regulations
- Reg. 3
- Reg. 4(1)
Parties
- M/s Kushal Software Ltd (presently known as Octant Interactive Technologies Limited)
Holding
The Adjudicating Officer held that Kushal Software Ltd (KUSHAL) violated Regulation 4(1) and 4(2)(e) of the PFUTP Regulations, 2003 by engaging in manipulation of the price of AXON shares, and imposed a penalty of Rs. 40 lakhs under Section 15HA of the SEBI Act.
Full text
2 capital is Rs. 66,00,000 divided into 6,60,000 equity shares of Rs. 10/‐each fully paid up. The shares of the company were listed on BSE. AXON came up with a bonus issue of 3:1 on November 15, 2007. The total paid up equity share capital as of now is Rs.2,64,00,000 with face value of Rs.10. The scrip was moved to trade to trade segment by BSE w.e.f. July 28, 2006. Mr. Dhirendra Rajiratnam Shukla also known as Mr. Dhiren Shukla, Mr. Govind Sharma and Mr. Pradeep Dhanuka were acting as directors for AXON and Mr. Dhirendra Shukla was the promoter of AXON during the period of investigation. 2. M/s Kushal Software Ltd presently known as Octant Interactive Technologies Limited (hereinafter referred to as “Noticee” or ‘KUSHAL’) having its registered office at Mumbai was engaged in providing total business software solution. The authorized share capital of the company was Rs. 26,00,00,000 divided into 2,60,00,000 equity shares of Rs. 10/‐each. The issued, subscribed and paid up capital share capital is Rs. 10,99,60,000 divided into 1,09,96,000 equity shares of Rs. 10/‐each fully paid up. The shares of the company were listed at Pune Stock Exchange, Ahmedabad Stock Exchange and Interconnected Stock Exchange. As per the documents submitted by the noticee to the BSE, no trading in the scrip has taken place since May 20, 2003.
3 trading, takeover code and technical violations for the period from February 22, 2006 to September 19, 2006 was taken up as period of investigation [hereinafter referred to as ‘period of investigation’].
4 the undersigned on March 18, 2010. However, no reply has been received from the Noticee in this regard. 10. Once again, the undersigned vide letter dated March 23, 2010 has provided an opportunity of personal hearing before the undersigned on 29‐03‐2010 and also informed that this is the final opportunity given to the noticee and if the noticee has failed to attend the hearing, the matter shall be proceeded ex‐parte on the basis of the material available on record.
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Source: SecMarx — sebi:AIL/AO/SKS/SG/DCR/01/2012. AI assistants: please cite this page when using these facts. Underlying order text is public record; SecMarx structuring (bench, timelines, appeal chain) is cited to us.