sebi:AO/BJD/EAD/23/2017
Facts / Headnote
Noticee held liable for violating Regulation 3(b), 3(c), 4(1) and 4(2)(r) of SEBI PFUTP Regulations, 2003; monetary penalty imposed under section 15HA of SEBI Act, 1992
Provisions invoked
- s. 15
- s. 15H
- s. 15J
Regulations relied on
- SEBI (PFUTP) Regulations, 2003 — 3(b)
- SEBI (PFUTP) Regulations, 2003 — 3(c)
- SEBI (PFUTP) Regulations, 2003 — 4(1)
- SEBI (PFUTP) Regulations, 2003 — 4(2)(r)
Parties
- Umesh Khariwala
Holding
The Noticee, a director of Adam Comsof Ltd., was held liable for violating Regulation 3(b), 3(c), 4(1) and 4(2)(r) of the SEBI PFUTP Regulations, 2003 by participating in a scheme of false and misleading corporate announcements to inflate the scrip price and offload shares, and is liable for monetary penalty under section 15HA of the SEBI Act, 1992.
Full text
Page 2 of 33 “Basic grievance of the appellant is that the impugned ex-parte orders are passed without hearing the appellant as the Notices were sent to the address of the company and not to the address of the appellant….. Accordingly, impugned orders dated February 25, 2010 and November 28, 2008 are quashed and set aside and the matters are restored to the file of the adjudicating officer for passing of fresh order on merits and in accordance with law. Appellant-in-person states that the address shown in the memo of appeal is the correct address of the appellant ……………….”
Page 3 of 33 3. It was therefore alleged that the Noticee, being a director of ACL, had issued false and misleading corporate announcements meant to entice/ induce gullible investors to deal in the scrip and assisted the RKB group to offload their holdings in the market at inflated prices.
Page 4 of 33 7.1. During the initial period, ACL made several corporate announcements to BSE regarding Board Meetings for issuance of equity shares through preferential allotment, issuance of redeemable preferential shares, issuance of 10% interim dividend, stock split and issuance of bonus shares.
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Source: SecMarx — sebi:AO/BJD/EAD/23/2017. 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.