sebi:AO/BS/13/2008
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Facts / Headnote
Consent settlement - adjudication proceedings disposed of on payment without admission or denial of guilt
Provisions invoked
- s. 15I
Regulations
- Reg. 17(1)
Parties
- SMC Global Securities Limited
Holding
This consent order disposes of the adjudication proceedings initiated against SMC Global Securities Limited vide show cause notice No. A&E/BS/106138/2007 dated October 15, 2007 on payment of Rs. 5,00,000 as settlement without admission or denial of guilt.
Full text
Apr 30, 2008 | Orders : Settlement Order [ORDER NO.AO/BS/13/ 2008] 2. In the investigation conducted by SEBI into the dealings in the shares issued through Initial Public offeringings (IPOs) by certain companies, it was observed that many entities cornered / acquired shares in the various IPOs during the period 2003-2005 by making fictitious applications in the category reserved for retail investors using the medium of thousands of fictitious / benami applicants. The said key operators were being funded during the IPOs by certain financiers who provided money to the operators for making IPO applications in fictitious / benami names. It is alleged that the applicant ( Financier) acted through Key Operators who had opened many demat accounts in fictitious and benami names and made large number of applications in the IPOs in the category of retail investors.
Firefox https://www.sebi.gov.in/enforcement/orders/apr-2008/consent-order-aga... 2 of 2 12-10-2025, 22:32 6. In view of the above, it is hereby ordered that: (i) this consent order disposes of the present adjudication proceedings initiated vide show cause notice no. A&E/BS/69570/2006 dated June 16, 2006 against the applicant. (ii) passing of this order is without prejudice to the right of SEBI to take enforcement action including commencing/reopening of the pending proceedings against the applicant, if SEBI finds that: a. any representations made by the applicant in the consent proceedings are subsequently discovered to be untrue. b. the applicant has breached any of the clauses / conditions of undertakings/waivers filed during the current consent proceedings.
3 initiated against the applicant vide show cause notice no. A&E/BS/69570/2006 dated June 16, 2006.
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Source: SecMarx — sebi:AO/BS/13/2008. 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.