sebi:AO/SBM/EAD-1/319/2018
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Facts / Headnote
Penalty imposed on the Noticee for failure to comply with summons issued by the Investigating Authority
Provisions invoked
- s. 15A
- s. 15
- s. 19
- s. 15J
- s. 11C(6)
- s. 12
- s. 11C
- s. 11C(2)
- s. 11C(3)
Parties
- Albright Electricals Private Limited
Holding
The Noticee, Albright Electricals Private Limited, violated sections 11C(2) and 11C(3) of the SEBI Act by failing to comply with the summons dated January 29, 2014 and June 03, 2014 issued by the Investigating Authority, and a penalty of Rs. 5,00,000/- was imposed under section 15A(a) of the SEBI Act.
Full text
Page 2 of 21 IPO of RKDL viz. Comfort Securities Limited (hereinafter referred to as ‘CSL’). It was also observed during the course of investigation that CIL, which has been referred in the aforementioned news article, was a group/associate company of CSL.
Page 3 of 21 4. It was further observed that an amount of Rs. 4 crores out of the IPO proceeds was also transferred from the account of RKDL to the account of Gulistan on December 24, 2010 and on the very same day, Gulistan had transferred the entire amount to the account of the below mentioned entities/person in following transactions: i. Gulistan transferred Rs 1 crore to the account of Udaybhai Prabhudas Shah (Udaybhai), who, in turn, transferred the said amount of Rs. 1 crore to the account of his stock broker viz. M/s Kunvarji Finstock Pvt. Ltd. on the same day i.e. December 24, 2010 to trade in the shares of RKDL on the opening day of the listing of the scrip of RKDL i.e on December 27, 2010. ii. Gulistan also transferred Rs. 3 crore to the account of Prefer Abasan Pvt. Ltd. (Prefer) on December 24, 2010, which had, in turn transferred the said amount to the account of its stock broker viz. M/s Maverick Share Brokers Pvt. Ltd. on December 27, 2010 for trading in the shares of RKDL on the first day of listing of the scrip of RKDL. iii. Subsequently, Prefer transferred back Rs. 3 crore to the account of the Gulistan on February 10, 2011, which Gulistan transferred to the Noticee. The Noticee also received Rs. 5 crore from Vibhuti on the same day i.e. February 10, 2011. Noticee, in turn, transferred these funds to 8 different entities as given below: i. Rs. 25 Lakh to Neelkanth Commodities Pvt. Ltd. ii. Rs 87.50 lakhs to Brijdham Dealcom Pvt. Ltd. iii. Rs 62.50 lakhs to Ev
Page 4 of 21 5. It is observed that an amount of Rs. 2.75 crores out of the IPO proceeds was transferred from the account of RKDL to the account of the Gaungour Suppliers Pvt. Ltd. (Gaungour) on February 18, 2011. On the very same day, it was observed that Gaungour had transferred Rs. 1 crore to the account of Grafton and Rs. 1.80 crore to the account of the Noticee. Noticee, in turn, made the following fund transfers on the same day i.e. February 18, 2011:- i. Rs 1 crore to Unisys Softwares and Holding Industries Ltd ii. Rs 50 lakh to Matrix Systel Pvt Ltd iii. Rs 5 lakh to J M D Sounds Ltd. iv. Rs 25 lakh to Rajan Sharma
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Source: SecMarx — sebi:AO/SBM/EAD-1/319/2018. 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.