sebi:AS/KSL/AO-1/2010
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Facts / Headnote
Penalty of Rs. 2 lakhs imposed on KSL
Provisions invoked
- s. 15A
- s. 15
- s. 15J
Regulations
- Reg. 28(v)
- Reg. 15A
Parties
- Khandwala Securities Limited
Holding
KSL violated Regulation 28(v) of the MB Regulations by failing to furnish information sought by SEBI and is liable to a monetary penalty of Rs. 2 lakhs under Section 15A of the SEBI Act.
Full text
Page 2 of 9 August 9, 2010 manager of the issue namely Mr. Paresh J. Khandwala, Managing Director, KSL. 3. In this connection, Securities and Exchange Board of India (hereinafter referred to as “SEBI”) vide letter ISD/SKD/97711/2007 dated July 2, 2007 sought comments of KSL with regard to the alleged MoU but no reply was received. Thereafter, reminders dated September 10, 2007, October 12, 2007 and January 1, 2008 were sent to KSL but no reply was received. Thus, KSL is alleged to have violated Regulation 28(v) of SEBI (Merchant Bankers) Regulations, 1992 (hereinafter referred to as ‘MB Regulations’) making them liable for monetary penalty under section 15A of the Securities and Exchange Board of India Act, 1992 (hereinafter referred to as ‘SEBI Act’).
Page 3 of 9 August 9, 2010 7. KSL vide letter dated December 29, 2009 sought a three weeks extension to reply while stating that the concerned person was not available due to Christmas vacation. KSL also requested that after submission of their reply they may be given an opportunity of hearing before proceeding the matter. KSL was given time upto January 22, 2010 to furnish their reply to the SCN.
Page 4 of 9 August 9, 2010 12. As per the request, KSL was advised that the hearing date was fixed on April 1, 2010. 13. On the scheduled date, the KSL’s Authorised Representative (AR) attended the hearing and submitted that: i. Though KSL had replied to SEBI’s first reminder letter dated September 10, 2007, the same remains untraceable. ii. When it was indicated that SEBI had sent two subsequent reminders, the AR submitted that no replies were furnished to subsequent reminder letters from SEBI assuming that reply has been furnished to 1st reminder letter dated September 10, 2007. iii. The AR requested for a week’s time for the KSL to furnish written
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Source: SecMarx — sebi:AS/KSL/AO-1/2010. 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.