sebi:ASK/AO/1/2015-16

SEBI · SEBI · 2013-03-08 · A. Sunil Kumar, Adjudicating Officer

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Facts / Headnote

Penalty imposed on noticee for violation of sections 11C(3) and 11C(5) of SEBI Act, 1992

Provisions invoked

• s. 15A
• s. 15
• s. 15I
• s. 15J
• s. 15H
• s. 11C(3)
• s. 11C
• s. 11C(5)

Parties

• Indivar Traders Pvt. Ltd.

Holding

The noticee violated sections 11C(3) and 11C(5) of the SEBI Act, 1992 by failing to furnish complete information as required by the summons dated February 22, 2013 and by failing to appear personally before the Investigating Authority as required by the summons dated March 08, 2013. A monetary penalty of Rs. 2,00,000/- for each violation (total Rs. 4,00,000/-) was imposed under section 15A(a) of the SEBI Act.

Full text

Adjudication Order against Indivar Traders Pvt. Ltd. in the matter of Mahan Industries Ltd. Page 2 of 10 scheduled date and time before the IA as required under the summons dated March 08, 2013. Therefore, it was alleged that the noticee violated the provisions of section 11C(3) and 11C(5) of Securities and Exchange Board of India Act, 1992 (hereinafter referred to as “SEBI Act, 1992”). APPOINTMENT OF ADJUDICATING OFFICER

Adjudication Order against Indivar Traders Pvt. Ltd. in the matter of Mahan Industries Ltd. Page 3 of 10 6. Another opportunity of personal hearing was given to the noticee on January 16, 2015 vide notice dated January 02, 2015. However, vide email dated January 15, 2015 a request was made on behalf of the noticee for rescheduling the hearing. As requested by the noticee, the hearing was rescheduled on January 28, 2015. On the scheduled date of hearing, Ms. Rinku S Valanju and Mr. Vivek Shah, appeared as authorised representatives (ARs) on behalf of the noticee. During the course of hearing, ARs submitted the copy of the noticee's reply dated January 23, 2015 in response to SCN and reiterated the same. ARs also sought time of 7 days for furnishing additional documents in the matter. However, the same has not been furnished till date. Be that as it may, Noticee’s main submissions as submitted vide reply dated January 23, 2015 in respect of the charges in the SCN are given as under : • There is major delay of about 4 years in issue of the SCN. • The noticee with a view to co-operate with the investigation initially had furnished certain documents and provided certain information. Inadvertently some remaining documents could not be sent owing to the change in management and other operational issues. The documents is now being submitted with this reply. • It is not shown that in the absence of these documents how the investigation process or proceedings have been hampered or adve

Adjudication Order against Indivar Traders Pvt. Ltd. in the matter of Mahan Industries Ltd. Page 4 of 10 c. If so, what would be the monetary penalty that can be imposed taking into consideration the factors mentioned in section 15J of SEBI Act? Issue I - Violation of the provisions of section 11C(3) and 11C(5) of SEBI Act, 1992

Source: SecMarx — sebi:ASK/AO/1/2015-16. 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.