sebi:AIL/AO/SKS/SG/DCR/02/2012
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Facts / Headnote
Penalty imposed on SHEETAL KADAM for contravention of PFUTP Regulations
Provisions invoked
- s. 15
- s. 15H
- s. 15J
Regulations
- Reg. 3
- Reg. 4
- Reg. 4(1)
Parties
- SHEETAL KADAM
Holding
SHEETAL KADAM was found to have participated in manipulation of the price of the scrip of AXON by acting as counterparty to KUSHAL in three off-market/on-market trades, and a penalty of Rs. 40 lakhs was imposed under Section 15HA of the SEBI Act, 1992.
Full text
Page 2 of 24 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 ‘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 KUSHAL to the BSE, no trading in the scrip has taken place since May 20, 2003.
Page 3 of 24 Adjudicating Officer) Rules, 1995, was issued to SHEETAL KADAM asking her to show the cause as to why an enquiry should not be held against him and why
Page 4 of 24 documents relating to the matter, so that he can give a more comprehensive and detailed reply if required. e) It is further submitted that SHEETAL KADAM reserves the right to make further additional submission based on material facts that may be disclosed to her or come to her knowledge in the course of the instant adjudication proceedings. f) It is submitted that SHEETAL KADAM should not be construed to accept or admit anything stated in this letter except where the same has been expressly admitted by SHEETAL KADAM herein. g) Submissions with regard to alleged violation of PFUTP Regulations i) It is submitted that a genuine transaction by itself cannot attract the provisions of the PFUTP Regulations even if such a transaction had resulted in volume and price variation. ii) SHEETAL KADAM has submitted that SEBI has not produced satisfactory evidence to establish the allegation that any of deal has was with the intention of manipulation of the price of a security. Mere possibility cannot and should not be used for framing charges of the said violations. Further, relying on such presumptions and assumptions would lead to misapplication of facts and grave and serious miscarriage of justice. iii) SHEETAL KADAM has submitted that she had dealt in the scrip for investment purpose only. iv) Thus even the motive attributed to SHEETAL KADAM on
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Source: SecMarx — sebi:AIL/AO/SKS/SG/DCR/02/2012. 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.