sebi:AO/SBM/EAD-1/324/2018
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Facts / Headnote
Adjudication proceedings initiated against the Noticees vide SCNs dated March 10, 2017 are disposed of without any penalty.
Provisions invoked
- s. 15
- s. 12A
- s. 15H
Regulations
- Reg. 3
Parties
- Dashrathkumar Keshaji Khatri
- Deveraj Siddiah Pera Naidu
- Dilipbhai Jaswantlal Gajjar
Holding
The adjudication proceedings against the three Noticees for non-compliance with SEBI's Interim Order dated November 05, 2013 (regarding deposit of Rs. 6,00,11,512 in an escrow account) are dropped without penalty, as the alleged non-compliance was not established.
Full text
Page 2 of 9 and also prohibited from buying, selling or dealing in the securities market, either directly or indirectly, in any manner whatsoever, till further directions. Further, vide the said interim order, the aforementioned 38 persons/entities were also directed by SEBI to keep in an escrow account, jointly and severally, within 30 days of the said interim order, an amount of Rs 6,00,11,512/- that they have earned as ill-gotten profit during the period March 13, 2013 to October 18, 2013 and were also directed to keep any other amount that they have realized as sale proceeds of shares allotted to them in the Preferential Allotment of shares made by the company on March 15, 2012.
Page 3 of 9 ‘relevant period’) and after the completion of the investigations, enforcement proceedings were initiated by SEBI against several persons/entities, which also included the persons/entities mentioned in the interim order. Pursuant to the investigations, it was specifically observed by SEBI in the investigation report ( IR) that the persons/entities mentioned in the interim order dated November 5, 2013 have failed to comply with the following direction issued by SEBI :-
Page 4 of 9 Imposing Penalties by Adjudicating Officer) Rules, 1995 (hereinafter referred to as 'Adjudication Rules') to inquire into and adjudge under the provisions of section 15HB of the SEBI Act, the alleged non-compliance by the Noticees w.r.t the direction issued to them vide Interim Order dated November 05, 2013, details of which are mentioned at para 3 above.
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Source: SecMarx — sebi:AO/SBM/EAD-1/324/2018. 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.