sebi:BM/AO-13-18/2012
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Facts / Headnote
Noticees found guilty of violating section 12A(c) of SEBI Act read with Regulation 3(d) and 4(1), 4(2)(f) and 4(2)(r) of PFUTP Regulations, 2003; penalties imposed under section 15HA
Provisions invoked
- s. 15
- s. 12A
- s. 12
- s. 15H
- s. 15J
- s. 11C(1)
Regulations
- Reg. 3
- Reg. 4(1)
- Reg. 4(2)(f)
- Reg. 200
- Reg. 3(d)
- Reg. 4(2)(r)
Parties
- Rich Capital & Financial Services Ltd (Now known as Rich Universe Network Ltd)
- Mr. Rajeev Agarwal
- Mr. Sanjay Gupta
- Mr. Shashwat Agarwal
- Mr. Dhrupesh Shah
- Mr. K. K. Agarwal
Holding
The Noticees (RCFL and its directors) were found guilty of violating section 12A(c) of the SEBI Act, 1992 read with Regulation 3(d) and 4(1), 4(2)(f) and 4(2)(r) of the PFUTP Regulations, 2003, for making a misleading corporate announcement regarding a Rights Issue and withholding the outcome of the Board meeting from the public for nearly two months. Penalties of Rs. 1,50,000 on the company and Rs. 2,50,000 on each of the five directors were imposed under section 15HA.
Full text
Page 2 of 20 ‘UPSE’). The trading in the scrip of the company was investigated due to sharp price rise and trading in heavy volumes in the scrip during the investigation period.
Page 3 of 20 6. A common Show Cause Notice No. EAD-6/BM/VRP/16555/2011, No. EAD- 6/BM/VRP/16561/2011, No. EAD-6/BM/VRP/16563/2011, No. EAD-6/BM/VRP/16558/2011, No. EAD-6/BM/VRP/16564/2011 and No. EAD-6/BM/VRP/16568/2011 respectively dated 24.05.2011 (hereinafter referred to as “SCN”) was issued to the Noticees under rule 4(1) of the Rules to show cause as to why an inquiry should not be held against the Noticees and penalty be not imposed under section 15HA of SEBI Act for the alleged violation specified in the said SCN. The SCN was duly acknowledged by the Noticees except Mr. Dhrupesh Shah and Mr. K.K.Agarwal. The said SCN was sent through U.P. Stock Exchange ltd vide letter dated 20.10.2011 for delivery to Mr. Dhrupesh Shah and Mr. K.K. Agarwal. U.P. Stock Exchange vide letter dated 01.11.2011 informed that the SCN of Mr. Dhrupesh Shah was affixed at the address given in the SCN and in respect of K.K. Agarwal the SCN was sent through speed post to him.
Page 4 of 20 held on 10th August 2008. Virtually there was no outcome of that meeting since neither the board completely dropped the idea of right issue nor they approved right issue but simply it was adjourned as intimated vide letter dated 09.10.2009 referred in your notice.
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Source: SecMarx — sebi:BM/AO-13-18/2012. 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.