sebi:AP/AO/9/2009-10

SEBI · SEBI · 2005-05-12 · Amit Pradhan, Adjudicating Officer

Reviewed by Varun Matlani, Advocate — Securities Lawyer practicing in SAT and SEBI

Facts / Headnote

Penalty imposed on the noticee for failure to furnish information in response to statutory summons issued under Section 11(3) of the SEBI Act, 1992.

Provisions invoked

• s. 11
• s. 15A
• s. 15
• s. 12
• s. 15J
• s. 15I
• s. 11(3)

Parties

• Shri Dhaval Jhaveri

Holding

The Adjudicating Officer imposed a penalty of Rs. 1,00,000 on Shri Dhaval Jhaveri, CMD of BITL, under Section 15A(a) of the SEBI Act, 1992 for failure to furnish information to the investigating authority in response to statutory summons issued under Section 11(3) of the SEBI Act, 1992.

Full text

Page 2 of 13 02. Shri A Chandrasekhar Rao (hereinafter referred to as "then AO") issued a show cause notice (hereinafter referred to as "SCN") dated May 12, 2005 under Rule 4(1) of SEBI (Procedure For Holding Inquiry And Imposing Penalties By Adjudicating Officer) Rules, 1995 (hereinafter to as "Adjudication Rules") to the noticee communicating the allegations levelled against him and calling upon him, as to why an inquiry in terms of the said Rules should not be conducted against him. The SCN issued to the noticee returned undelivered with postal remarks “left”. A fresh SCN dated July 11, 2005 was issued to the noticee along with relying upon documents. The said notice got served on the noticee by way of affixture in terms of Rule 7 (c) of Adjudication Rules through the Stock Exchange of Ahmedabad(hereinafter referred to as "ASE"). A report dated September 13, 2005 of Service of Notice by way of pasting was received from ASE vide its letter dated September 14, 2005.

Page 3 of 13 understand the background under which information was sought from the noticee and also the definitions of relevant sections/regulations in this regard: (i) SEBI Act, 1992

Page 4 of 13 during which such failure continues or one crore rupees, whichever is less] 06. SEBI conducted investigations into the trading in the scrip of BITL. The said investigation was ordered to ascertain whether any provisions of the Act and various Rules and Regulations made there under were violated. It was alleged that BITL did not inform SEBI regarding the allotments of new equity shares, which triggers the Takeover Code and infringe Preferential allotment Guidelines prescribed by SEBI (Disclosure & Investor Protection) Guidelines, 2000.

Source: SecMarx — sebi:AP/AO/9/2009-10. 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.