sebi:AIL/AO/SKS/SG/DCR/03/2012
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Facts / Headnote
Penalty of Rs. 40 lakhs imposed on the noticee under Section 15HA of the SEBI Act for violating Regulation 4(2)(e) of the SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003
Provisions invoked
- s. 15
- s. 15H
- s. 15J
Regulations
- Reg. 4
- Reg. 4(2)
- Reg. 4(2)(e)
- Reg. 27
Parties
- Dhirendra Rajiratnam Shukla (also known as Dhiren Shukla)
Holding
The noticee, Mr. Dhiren Shukla, promoter and director of AXON, violated Regulation 4(2)(e) of the PFUTP Regulations by selling 2,11,200 shares at Rs. 2.00 per share when the market price was Rs. 67.20, thereby manipulating the price of the security. A penalty of Rs. 40 lakhs was imposed under Section 15HA of the SEBI Act.
Full text
2 capital share 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.
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 9. Considering the aforesaid request of the noticee, the undersigned vide letter dated March 11, 2010 has informed the noticee that the date of personal hearing before the undersigned was adjourned to March 22, 2010 and also informed the noticee 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. 10. But, once again the noticee vide letter dated March 15, 2010 has made the same request as stated earlier that 2 weeks time to reply to the said SCN may be granted and also scheduled personal hearing before the undersigned may be adjourned.
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Source: SecMarx — sebi:AIL/AO/SKS/SG/DCR/03/2012. 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.